Accounting Terms

A financial statement that provides information about a company’s present condition

• Accounting

• Debit

• Balance Sheet

• Accounting Equation

Must be balanced – meaning both sides of the equation must be equal

• Double-Entry Method

• Debit

• Credit

• Accounting Equation

Left side of the T-chart

• Accounting

• Debit

• Credit

• Accounting Equation

Assets = Liabilities + Equity

• Accounting

• Debit

• Credit

• Accounting Equation

A financial tool that provides information about a company’s past performance

• Double-entry method

• Accounting cycle

• balance sheet

• income statement

Right side of the T-chart

• Double-entry method

• Accounting cycle

• Credit

• income statement

The process of keeping track of a business’ finances

• Double-entry method

• Accounting

• balance sheet

• income statement

The process of recording and processing the accounting events of a company

• Double-entry method

• Accounting cycle

• balance sheet

• income statement

A business type that combines the benefits of partnership’s flexibility and a corporation’s protection

• Sole Proprietorship

• Partnership

• Corporation

• LLC

Obligations of the business to transfer something of value to another party

• Sole Proprietorship

• Liability

• Corporation

• LLC