Basic Concepts

• What does DEALER stand for?

  Dividends, Expenses, Assets, Liabilities, Equity, Revenue
• What is double-entry accounting?

  A method of financial accounting in which every transaction is recorded in at least two accounts: in one account as a debt, and in one account as a credit.
• What does the term "bottom line" refer to?

  Net profit, which is presented at the bottom of an income statement.
• What is the basic accounting equation?

  Assets = liabilities + equity + revenue - expenses.
• What is the basic balance sheet equation?

  Assets = liabilities + equity.
• The left side of DEALER refers to accounts which are?

  Debit accounts.
• The right side of DEALER refers to accounts which are?

  Credit accounts.
• The term "net profit" is synonymous with what term?

  Net income.
• The term "net income" is synonymous with what term?

  Net profit