Accounting
Unearned Revenue
Income recorded before services or goods have been rendered.
Capital
Initial investments made by owners like stock purchases or partnership buy-ins.
fixed assets
Long-term assets that are relatively permanent such as land, buildings, Equipment, vehicles, machinery, computers or equipment.
supplies
Miscellaneous assets that are entire in product production that are too small and inexpensive to capitalize.
Cash
The most liquid asset a company can own.
Equity
The owner's interest in the company assets.
Journal Entry
is used to record a business event as they occur throughout the year.
Where do Contra equity accounts have balances on the T-account?
left side
account
the record of all the changes in a specific asset, liability, or stockholders' equity during a period
Liability
A creditor's claim on a company' assets.
T account
A formatting system used to setup and maintain accounts balances with debits on the left and credits on the right. This display format also totals the cumulative balances of accounts.
inventory
A list of possessions or goods on hand.
note payable
A long-term contract to borrow money from a creditor
revenue
Assets earned by a company's operations and business activities.
General Journal
A record or collection of all journal entries in an accounting system.
General Ledger
A record or document that contains account summaries for accounts used by a company.
Asset
A resource that is owned or controlled by a company that can be used to provide a future economic benefit.
Financial Accounting
A subsection of the general field of accounting that focuses on gathering and compiling data in order to present it to external users in a usable form.
Notes Receivable
A written promise to repay money.
Accounts Receivable
An asset that arises from selling goods or services to someone on credit
common stock
An equity account that records the amount of money investors initially contributed to the corporation for their ownership in the company.
Accounts Payable
Credit recorded when a company purchase inventory on credit from vendors or supplies.
Extended Accounting Equation
Elongated mathematical formula used as a basis for accounting. Assets = Liabilities + Common Stock - Dividends + Paid In Capital - Treasury Stock + Revenues - Expenses.
Debit
Entry on the right side of an account.
prepaid expenses
Expenditures paid and recorded before actually occurring.
retained earnings
Profits that are kept within the company and distributed to shareholders.
double-entry accounting
The accounting system that requires every business transaction or event to be recorded in at least two accounts.
Summarizes the accounting equation in report format.
The balance sheet
Expenses
The costs incurred to generate revenues.
business event
an exchange of value between two different groups