| A | B |
|---|
| Cash | Asset - Debit |
| Prepaid Insurance | Asset - Debit |
| Supplies | Asset - Debit |
| A/P Office Depot | Liability - Credit |
| Capital | Owner's Equity - Credit |
| Accounts Receivable | Asset - Debit |
| Accounts Payable | Liability - Credit |
| Drawing or Withdrawal | Owner's Equity - Debit |
| Sales | Revenue - Credit |
| Rent Expense | Expense - Debit |
| Office Equipment | Asset - Debit |
| Office Supplies | Asset - Debit |
| Sales Tax Payable | Liability - Credit |
| Payroll Tax Expense | Expense - Debit |
| Utilities Expense | Expense - Debit |
| Computer Equipment | Asset - Debit |
| Salaries Expense | Expense - Debit |
| Depreciation Expense | Expense - Debit |
| Income Tax Payable | Liability - Credit |
| Auto Loan | Liability - Credit |
| Net Loss | When expenses are greater than revenue |
| Sole Proprietorship | A business with a single owner |
| Accounts Receivable | Total amount of money to be received in the future |
| Source Documents | Checks, Receipts, Memos, Invoices |
| GAAP | The rules accountants follow when recording and reporting financial information |
| Corporation | A form of business that requires permission from the state |
| Accounts Payable | Total amount of money owed to creditors |
| Capital | Money invested in a business |
| Partnership | A business in which two or more persons combine assets |
| Trial Balance | A proof of equality of debits and credits in a general ledger |
| General Journal | An all-purpose, chronological record |
| Merchandising Business | Buys finished products and resells them to make a profit |
| Entrepreneur | An individual who transforms ideas for products or services into a business |
| Customers | Account balances are reflected in A/R |
| Vendors | Account balances are reflected in A/P |
| Post-Closing Trial Balance | The last step in the accounting cycle |
