AAMI Accounting 1
Liabilities - Question and answersDebts that are owed to another for goods/services
received/used but not yet paid for
Ex. Accounts Payable
Owner's Equity - Question and answersHow much a business is worth in dollar value
Revenue-Expenses = Capital
Assets - Question and answersThings that a business owns or posses that are worth a
specific dollar value
Ex. Cash & Accounts payable
Basic Accounting Equation - Question and answersLiabilities + Owner's Equity = Assets
Revenue - Question and answersMoney the business takes in from the sale of
goods/services
Fees - Question and answersMonies earned by services
Expense - Question and answersCost associated with doing business
Net Profit - Question and answersWhen revenue exceeds expenses
^Gross Profit - Expenses = Net Profit
Net Loss - Question and answersWhen expenses exceeds revenue
Gross Profit - ^Expenses = Net Loss
Gross Profit Equation - Question and answersRevenue - Cost of Goods = Gross Profit
Capital - Question and answersMoney invested into the business by the owner using
their own funds
Withdrawal - Question and answersMoney an owner takes back out of the business for
personal use/to pay themselves back
Expanded Accounting Equation - Question and answersLiabilities + Capital In -
Withdrawals + Revenue - Expenses = Assets
Liabilities - Question and answersDebts that are owed to another for goods/services
received/used but not yet paid for
Ex. Accounts Payable
Owner's Equity - Question and answersHow much a business is worth in dollar value
Revenue-Expenses = Capital
Assets - Question and answersThings that a business owns or posses that are worth a
specific dollar value
Ex. Cash & Accounts payable
Basic Accounting Equation - Question and answersLiabilities + Owner's Equity = Assets
Revenue - Question and answersMoney the business takes in from the sale of
goods/services
Fees - Question and answersMonies earned by services
Expense - Question and answersCost associated with doing business
Net Profit - Question and answersWhen revenue exceeds expenses
^Gross Profit - Expenses = Net Profit
Net Loss - Question and answersWhen expenses exceeds revenue
Gross Profit - ^Expenses = Net Loss
Gross Profit Equation - Question and answersRevenue - Cost of Goods = Gross Profit
Capital - Question and answersMoney invested into the business by the owner using
their own funds
Withdrawal - Question and answersMoney an owner takes back out of the business for
personal use/to pay themselves back
Expanded Accounting Equation - Question and answersLiabilities + Capital In -
Withdrawals + Revenue - Expenses = Assets
