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BASIC ACCOUNTING PROCEDURES
What is the fundamental accounting equation?
The fundamental accounting equation is Assets = Liabilities + Capital (Owner's Equity), which must always remain in balance after every financial transaction.
What is the meaning of 'credit' in double-entry bookkeeping?
Credit records an increase in liabilities or income.
What is the meaning of the term 'debit' in double-entry bookkeeping?
Debit refers to the left side of a ledger account; it increases asset and expense accounts while decreasing liability, capital, and income accounts.
What is a source document in accounting?
Original evidence supporting a financial transaction record.
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