Accounting I Study

Front

What is the foundation of accounting?

Back

The foundation of accounting is represented as Assets = Liabilities + Owner's Equity.

Front

How is the accounting equation represented?

Back

Assets = Liabilities + Owner's Equity.

Front

Liabilities

Back

Debts or obligations a business owes to others, such as loans or accounts payable.

Front

Assets

Back

Resources owned by a business that have value, like cash, inventory, and equipment.

Front

Owner's Equity

Back

The owner's interest in the business after deducting liabilities from assets.

Front

Owner's Capital Account

Back

An account that represents the owner's investment in the business.

Front

Owner's Drawing Account

Back

An account that tracks withdrawals made by the owner for personal use.

Front

Sale on Account

Back

A sale where payment is due later and recorded as accounts receivable.

Front

Purchase on Account

Back

A purchase made with a promise to pay later, recorded as accounts payable.

Front

Asset Debit

Back

An entry that increases an asset account. Like cash received.