The normal balance side of an owner's capital account is the

The following is the accounting equation: assets + liabilities = owners equity

Debits do not have to equal credits.

When you have a sale on account which account is used?

Accounts payable is classified as what type of account?

A tool used to analyze transactions into debit and credit parts.

Paid cash on account, $85. How is this recorded under the accounts payable account? Debit or Credit

A notes payable is considered a

When journalizing you should record the debit account first

Billed a customer for piano lessons. Which two accounts are affected?

Gigi withdrew $200 to pay her personal rent. Which accounts are affected?

This type of business has stockholders.

This business is taxed as an individual. Profits made are taxed as owners income.

Business operation between two or more individuals who share management and profits.

This column is used to put the account number.

A form that list of accounts used by a business along with balances.

Check all of the following that are examples of source documents:

List accounts names and their balances on a specific date. Allows you to detect errors.

The same accounting methods and format of statements should be used over time so they can be compared.

The same accounting principles must be followed at all times.

Statements must be presented honestly and accurately.

The purpose of internal controls is to

This is one way to measure a company’s operating results. It allows analysts to focus on factors that have affected the profitability of the company.

This compares each section and each line item of an income statement with total revenue.

This compares a company’s net income with its revenue (also called sales). In other words, a company makes a certain amount of revenue, but doesn’t get to keep it all.

Return on sales ratio is