| A | B |
|---|
| A financial statement that lists what you own, what you owe, and how much you are worth. | Balance Sheet |
| What is the accounting equation? | Assets = Liabilities + Owners Equity |
| Shows how a business performed over a period of time. It shows the revenue, expenses, and profit or loss | Income Statement |
| A staff employee who records business transactions | Accounting Assistant |
| Accountants that have passed a series of demanding accounting exams and are licensed by a state. | Certified Public Accountant |
| Journal used to record any type of transaction | General Journal |
| Journal used to record only sales of merchandise on account | Sales Journal |
| Journal used to record only cash receipts transactions | Cash Receipts Journal |
| Journal used to record only cash Payments transactions | Cash Payments Journal |
| Journal used to record only purchases of merchandise on account | Purchases Journal |
| a ledger that is summarized in a single general ledger account | Subsidiary ledger |
| keeps track only of money owed to you | Accounts receivable ledger |
| keeps track only of money you owe | Accounts payable ledger |
| shows employees names, earnings, all deductions, and net pay | Payroll Register |
| the cost of the inventory a business has sold | Cost of goods sold |
| Keeps track of inventory levels on a daily basis | Perpetual inventory method |
| involves taking a physical inventory of your merchandise | Periodic Inventory method |
| True or False. Most service businesses don’t have a cost of goods sold | True |
| True or False. Businesses that sell hundreds of items usually do NOT use a computer to track inventory. | False |
| True or False. Being out of stock can cost you money and you may also lose customer loyalty. | True |
| True or False. Having too much inventory can cost you money. | True |
