Accounting Test Review Notes

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Accounting Test Review Notes by Mind Map: Accounting Test Review Notes

1. Revenue

1.1. are increases in owner's equity as a result of selling services or products to costumers

1.1.1. Fees Earned

1.1.2. Rent Revenue

1.1.3. Commission Revenue

1.1.4. Interested Revenue

1.2. Debit=Decreases ( - )

1.3. Credit=Increases (+)

2. Accounting Equations

2.1. Assets=Liabilities+Owner's Equity

2.1.1. ex. Asset=45,000, Liabilities=25,550, Owner's Equity=?

2.1.2. Solution: 45,000=25,550+? 45,000-25,550=? 19,450=?

2.2. Revenue-Expenses=Net income

2.3. Capital+Net Income=Ending Capital

3. What does Normal Balance mean?

3.1. An Increasing side (Debit or Credit)

4. T-Account

4.1. Debit

4.1.1. Cash

4.1.2. Land

4.1.3. Rent Expense

4.1.4. Withdrawal

4.2. Credit

4.2.1. Accounts Payable

4.2.2. Wages Payable

4.2.3. Sales

4.2.4. J.Doe, Capital

5. List of Assets

5.1. Are resources owned by the business entity

5.1.1. Cash

5.1.2. Land

5.1.3. Supplies

5.1.4. Buildings

5.1.5. Accounts Payable

5.1.6. Prepaid Expense

5.2. Debit=Increases (+)

5.3. Credit=Decreases ( - )

6. List of Liabilites

6.1. are debits owed to outsiders (creditors)

6.1.1. Wages Payable

6.1.2. Notes Payable

6.1.3. Unearned Revenue

6.1.4. Accounts Payable

6.2. Debit=Decreases ( - )

6.3. Credit=Increases (+)

7. Owner's Equity

7.1. is the owner's right to the assets of business

7.2. Debit=Decreases ( - )

7.3. Credit=Increases (+)

8. Expense

8.1. The using up of assets or consuming services in the process of generating revenues results in expenses

8.1.1. Wages Expense

8.1.2. Rent Expenses

8.1.3. Utilities Expenses

8.1.4. Miscellaneous Expense

8.2. Debit=Increases (+)

8.3. Credit=Decreases ( - )

9. Financial Statments

9.1. 1. Income Statement - (Net Income)

9.2. 2. Balance Sheet - (Cash)

9.3. 3. Cash Close Statement - (Cash)

9.4. 4. Statement of Owner's Equity - (Capital)

10. Capital Recievable=Earned

10.1. Company owned=assets

10.2. Expense=what you owe