HBX Financial Accounting Final Questions And
Answers|Latest Update
Owners' equity funds contributed by owners & profits generated by the business
Revenue Money a business receives from providing goods or services to a customer
Expenses Costs associated with providing goods or services to a customer
Double Entry Accounting The recording of debit and credit parts of a transaction. Debit
goes on the left, credit goes on the right.
How do debits and credits affect assets, liabilities, equity, expenses, and revenues respectively?
Assets and expenses increase with a debit and decrease with a credit.
Liabilities, owner's equity and revenue increases with a credit and decreases with a debit.
Trial Balance A list of all of the business' accounts that have balances at that date.
Asset and expense accounts have debit balances. Liability, equity & revenue accounts have credit
balances.
, HBX Financial Accounting Final Questions And
Answers|Latest Update
Retained Earnings Net profit remaining after dividends are paid to shareholders.
Part of owner's equity.
Property, plant, and equipment Asset account
Cash equivalents Asset account.
Short-term investments of excess cash that are very liquid and easily converted to cash.
Prepaid insurance Asset account
Unexpired balance of insurance that has been paid in advance. reflects the value of the insurance
coverage to the business
inventories asset account.
Inventory is the product that is being sold
Notes Receivable Asset Account.
, HBX Financial Accounting Final Questions And
Answers|Latest Update
Reflects the claim to receive cash at some future date for loans you have supplied to a third party.
Accounts payable liability account.
Reflects obligation to pay suppliers who have provided goods or services on credit.
________ Payable Liability Account
Short term debt Liability account
Investments Asset account
financial instruments such as stocks or bonds that the company has purchased
Common stock Equity account
Shows amounts of cash contributed to the business by the owners
Answers|Latest Update
Owners' equity funds contributed by owners & profits generated by the business
Revenue Money a business receives from providing goods or services to a customer
Expenses Costs associated with providing goods or services to a customer
Double Entry Accounting The recording of debit and credit parts of a transaction. Debit
goes on the left, credit goes on the right.
How do debits and credits affect assets, liabilities, equity, expenses, and revenues respectively?
Assets and expenses increase with a debit and decrease with a credit.
Liabilities, owner's equity and revenue increases with a credit and decreases with a debit.
Trial Balance A list of all of the business' accounts that have balances at that date.
Asset and expense accounts have debit balances. Liability, equity & revenue accounts have credit
balances.
, HBX Financial Accounting Final Questions And
Answers|Latest Update
Retained Earnings Net profit remaining after dividends are paid to shareholders.
Part of owner's equity.
Property, plant, and equipment Asset account
Cash equivalents Asset account.
Short-term investments of excess cash that are very liquid and easily converted to cash.
Prepaid insurance Asset account
Unexpired balance of insurance that has been paid in advance. reflects the value of the insurance
coverage to the business
inventories asset account.
Inventory is the product that is being sold
Notes Receivable Asset Account.
, HBX Financial Accounting Final Questions And
Answers|Latest Update
Reflects the claim to receive cash at some future date for loans you have supplied to a third party.
Accounts payable liability account.
Reflects obligation to pay suppliers who have provided goods or services on credit.
________ Payable Liability Account
Short term debt Liability account
Investments Asset account
financial instruments such as stocks or bonds that the company has purchased
Common stock Equity account
Shows amounts of cash contributed to the business by the owners
