Nj Cala Finance Study Guide Rated A+

Journals {Ans: The organization's "books" where transactions are first recorded before posting to the general ledger. 5 types of journals: -Cash receipt journal -Cash disbursement journal -Account receivable journal -Account payable journal -General journal (recording transactions that don't fit in to the above 4 categories)}Formula to Remember {Ans: Assets= Liabilities + Equity Assets-Liabilities= Net Worth}General Ledger {Ans: Recording summary of all transactions posted from each journal. The general ledger maintains a separate record for each acct as listed in the chart of accounts.}Break-Even Point {Ans: When revenues equal expenses.}Variable Expense {Ans: Expenses that change in direct proportion to occupancy (food, supplies, linens etc)}Chart of Accounts {Ans: A systematic arrangement or listing of all general ledger accts by category with corresponding general ledger acct numbers. Assets are listed first, followed by liabilities, equity, revenue, and expense accts.}