TAX 4011 chapter notes 1 PDF

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TAX 4011 chapter notes 1...

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Accounts payable Amounts to be paid in the future for goods or services already acquired.

Accounts receivable Amounts to be received in the future due to the sale of goods or services.

Chart of accounts A list of accounts used by a business.

Credit An amount recorded on the right side of an account.

Debit An amount recorded on the left side of an account.

Forensic accountant An accountant who combines accounting and investigating skills to uncover suspected fraudulent business activity, or to prevent such activity.

Normal balance The side of an account that is increased is called the normal balance of the account.

T account An accounting device used to analyze transactions.

State Normal Balance and Classify: Expense Debit (Equity)

State Normal Balance and Classify:

Cash Debit (Asset)

Classify: Revenue OR Income Credit (Equity)

State Normal Balance and Classify: Rent Expense Debit (Expense)

State Normal Balance and Classify: Accts. Pay.—Tri Delta Printing Credit (Liability)

State Normal Balance and Classify: Accts. Rec.—Suzie Rush Debit (Asset)

State Normal Balance and Classify: Sales Credit (Revenue)

State Normal Balance and Classify: Samantha Cooke, Capital Credit (Equity)

State Normal Balance and Classify: Samantha Cooke, Drawing Debit (Equity)

Generally these types of accounts are increased with a debit: Assets Drawing Expenses

Generally these types of accounts are increased with a credit: Liabilities Income Capital Equity

ADE Accounts that have normal balance on the debit side; stands for Assets, Drawing, and Expenses accounts

LICE Accounts that have normal balance on the credit side; stands for Liabilities, Income (Revenue or Sales), Capital, and Equity (Owner's Equity) accounts

liquidity Term used to describe how easy it is to convert assets to cash...