Account 3

Front 1

ABA number

Back 1

number assigned by American Bankers Association to a given bank.
1st part denotes city or state and specific bank on which check is drawn.
2nd part indicates federal reserve district in which check is cleared and routing number used by FRB.

Front 2

ATMS

Back 2

automated teller machines

Front 3

Bank reconciliation

Back 3

process-accountant determines if and why there is a difference between balance shown on bank statement and balance of back account in business's general ledger.
Object- determine adjusted (true) balance of cash account.

Front 4

bank statement

Back 4

periodic statement listing received and checks paid by bank, debit and credit memos, electronic transactions, and beginning and end balances.

Front 5

blank endorsement

Back 5

endorcement in which holder (payee) of a check simply signs name of the back with to restrictments.

Front 6

canceled checks

Back 6

checks issued by depositor that have been paid by bank and listed on statement.
canceled by stamp or perforation, indicating been paid.

Front 7

cash funds

Back 7

separately held reserves of cash set aside for specific purposes.

Front 8

change fund

Back 8

cash fund used by a biz to make change for customers who pay cash for goods and services.

Front 9

collections

Back 9

payments collected by bank and assed to customers account in form of menorandum.

Front 10

denominations

Back 10

varieties of coins and currency.

Front 11

deposit in transit

Back 11

deposit not recorded on bank statement because the deposti was made after bank hours. aka late deposit.

Front 12

drawer

Back 12

person who writes check

Front 13

Electronic funds transfer

Back 13

funds sent via teli, computer, or magnetic tape

Front 14

errors

Back 14

mistake made by customer or bank

Front 15

interest income

Back 15

amount earned from lending money to bis or person.

Front 16

internal control

Back 16

plans and procedures built into the accounting system.
1. protect asset against fraud and waste.
2. provide accurate accounting date.
3. promote efficiant opperation
4. encourage adherence to management policies.

Front 17

ledger of cash balance

Back 17

balance of cash account in general ledger before it is reconciled with bank statement

Front 18

MICR

Back 18

Magnetic ink character recognition. at bottom.

Front 19

NSF

Back 19

non sufficiant funds. cehck drawn against an account in which there are not sufficiant funds and returned by payee's bank....aka dishonored check.

Front 20

outstanding check

Back 20

checks written by drawer and deducted on their records but not reached bank for payment
not deducted from bank balance by time bank issues statement.

Front 21

payee

Back 21

person to whom a check is payable.

Front 22

petty cash fund

Back 22

cash fund used to make small immediate cash payment.

Front 23

petty cash payment record.

Back 23

record indicate amount of each petty cash voucher, accounts to which it should be charged, and purpose of expenditure.

Front 24

petty cash voucher

Back 24

form stating who requested cash from petty cash fund, signed by :
person in charge of fund
person who recieve cash to determine purpose of payment.

Front 25

promissory note

Back 25

written promise to pay a definite sum at a definite future time.

Front 26

qualified enforsement

Back 26

endorsement which payee of check avoids future liability as case NSF to cover check....
pay to order of without recourse

Front 27

restrictive endorsement

Back 27

restricts and further negotiation of check...

Front 28

service charge

Back 28

fee bank charges for handling checks, collections....form of debit memo

Front 29

signature card

Back 29

way to verify signature

Front 30

allowance method

Back 30

provides for bad debt losses in advance by estimating them based on percentage of credit sales.

Front 31

allowance method is treated as a

Back 31

deduction from accounts rec.
allowance for doubtful accounts=-contra account.

Front 32

specific charge method

Back 32

aka write off.
advantage=write off for fed income tax.
Only an advantage with accrual method.

Front 33

disadvantage for specific charge off method

Back 33

not consistent with accrual.

Front 34

overstated

Back 34

revenue for that yr was too high.

Front 35

understated

Back 35

net income for this yr too low because added expenses.

Front 36

calender year

Back 36

12 month period beginning on jan 1 and ending on dec 31 of same year.

Front 37

current tax payment act

Back 37

(income tax withholding)
act to require employers to withhold and pay to US treasury employee funds.

Front 38

employee

Back 38

one who works for compensation under direct and control of employer.

Front 39

employee's individual earnings record

Back 39

supplementary record for each employee showing:
personal payroll data
yearly cumulative earning
deductions,
net pay.

Front 40

Employee's withholding allowance certificate

Back 40

w-4
form that specifies number of allowances claimed by each employee and gives employer authority to withhold money for employee's fed income tax.

Front 41

exemption

Back 41

amount of an employee's annual earnings not subject to income tax for taxpayer, taxpayer's spouse, and dependents.

Front 42

Fair labor standards act

Back 42

1938, provides for minimum standards for wages and overtime, include provisions related to child labor and equal pay for equal work.

Front 43

FICA

Back 43

social sec tax+medicare tax.
paid by employee and employer under provisions of fed insurance contributions act.

Front 44

Gross pay

Back 44

total before deductions.

Front 45

independent contractor

Back 45

someone engaged for definite job or service.
may choose own means of doing work.
not an employee.

Front 46

Medicare tax

Back 46

fed gov tax levied on employees and employers.
use for med insurance for 65 or older.

Front 47

net pay

Back 47

groos minus deductions.
aka take home pay.

Front 48

payroll bank account

Back 48

special checking account used to pay company employee's.

Front 49

payroll register

Back 49

manual or computerized schedule prepared for each payroll period listing:
earnings,
deductions,
and net pay

Front 50

pre-tax deductions

Back 50

employee deductions that are not subject to income tax.
include:
med insurance premiums
medical and dependent care exp under flexible spending plan.

Front 51

Social security act of 1935

Back 51

act to provide for worker retirement funding through deductions from wages and matching amounts from employers.

Front 52

Soc Sec tax

Back 52

fed gov tax levied on employees and employers.
use for old-age pensions and disability benefits.

Front 53

taxable earnings

Back 53

amount of an employee's earnings subject to tax.

Front 54

wage-bracket tax tables

Back 54

chart provide amounts to be deducted for income tax based on:
amount of earnings,
marital stat,
number allowances claimed.

Front 55

withholding allowance

Back 55

amount of an employee's annual earnings not subject to income tax

Front 56

working comp laws

Back 56

law to protect employee's and dependents against losses due to death or injury incurred on job
tax expense.

Front 57

EIN

Back 57

employer ID number.
assigned by internal revenue service.
use in submission of reports and payment for FICA tax and fed income tax withheld.

Front 58

FUTA

Back 58

Fed unemployment tax
tax levied only-employer.
equal to 0.8% of first 7000 of total earning paid to each employee during calender year.
used to administer funds.

Front 59

FORM 940

Back 59

annual report filed by employers show:
total wage paid to employee's.
total wage subject to fed unemployment tax
ext.
aka Employer's Annual Federal Unemployment (FUTA) Tax Return.

Front 60

FORM 941

Back 60

Quarterly report- show tax liability for withholdings of:
employee's fed income tax
FICA taxes
employer's share of FICA tax
Tot deposit made in quarter listed on Employer's Quarterly Fed Tax Return.

Front 61

FORM W-2

Back 61

Contains info:
employee's earnings
tax deducation for year
aka wage and tax statement.

Front 62

FORM W-3

Back 62

sent to Soc Sec Administration listing:
Tot wages
tips
tot fed income tax withheld
tot Soc sec+medicare tax withheld
aka Transmittal of wage and Tax statements

Front 63

Payroll Tax exp

Back 63

general exp account for recording employer's matching portion of:
FICA tax
fed unemployment tax
state unemployment tax

Front 64

Quarter

Back 64

3 consecutive months
aka calendar quarter.

Front 65

State unemployment tax

Back 65

SUTA- levied only on employer.
rate differ in def states.
generally 5.4 of first 7000 of TEP to each employee during calendar yr.
used to pay subsistence benefits to unemployed workers.

Front 66

Workers comp insurance

Back 66

paid for by employer, provide benefits for employees injured or killed on job.
vary to how danger job is.
pays premium in advance based on estimated payroll

Front 67

Cash Receipts Journal

Back 67

book of original entry to record receipt of cash.
most frequent receipts of cash occur when a sale is made or when a person pays on a sale which was previously made on account.

Front 68

Cash Disbursements Journal

Back 68

sometimes called Cash Payments Journal is book of original entry to record payment or disbursement of money.
In this journal there will be a column for “Cash Credit” which is account used when cash is paid.

Front 69

Purchase Journal

Back 69

book of original entry used to record purchases of merchandise on CREDIT ONLY

Front 70

Sales Journal

Back 70

book of original entry used for recording of sales of merchandise on CREDIT ONLY

Front 71

MERCHANDISE INVENTORY

Back 71

goods that funeral home purchases with intent to resell, in same physical condition, at a profit.
best example is caskets purchased by funeral home.

Front 72

COST OF GOODS SOLD

Back 72

cost of merchandise sold or cost of sales, is total cost associated with acquiring merchandise sold.

Front 73

GROSS PROFIT

Back 73

aka Gross Margin.
Net Sales minus Cost of Goods Sold

Front 74

Perpetual Inventory System

Back 74

classified as an Expense.
merchandise acquired--cost of merchandise entered-- asset account (Inventory)
merchandise sold--decreas Inventory account, increasing Cost of Goods Sold account.
system-perpetual system since cost of goods sold determined immediately any time by balancing cost of goods sold account in ledger.

Front 75

Periodic Inventory System

Back 75

Chart of Accounts includes accounts for Purchases, Purchase Returns and Allowances, Freight-In and Purchases Discount.

Front 76

PURCHASES

Back 76

account for recording cost of merchandise for resale.
treated as expense account and accordingly is a temporary account closed to owner’s equity at end of every accounting period.

Front 77

PURCHASES RETURNS AND ALLOWANCES

Back 77

account utilized to record return of merchandise to manufacturer or supplier as result of defects in workmanship, damaged goods or other reductions in bill.
is contra purchases and will be closed at end of every accounting period.

Front 78

PURCHASES DISCOUNTS

Back 78

Contra purchase account.
account utilized to record amount of discount taken on purchases of merchandise.

Front 79

Periodic system appears usually where?

Back 79

income statement

Front 80

2/10, n/30

Back 80

seller is offering reduction of 2% if invoice is paid within 10 days (2/10)
and in any event entire balance is due in 30 days (n/30 - net 30).

Front 81

2/10 EOM, n/60

Back 81

discount means that 2% discount is offered if paid within 10 days from End of month and entire bill is due 60 days after last day of month

Front 82

lifo

Back 82

last in first out

Front 83

fifo

Back 83

first in first out.

Front 84

form 1120

Back 84

corp tax return

Front 85

Most frequent special journal transactions

Back 85

sales and inventory

Front 86

peg board

Back 86

series of 25 checks that overlap, part is carbonated. Top of column credit cash
don't post until you need to. Enables you to run one separate journal.
CASH DISPURSMENTS JOURNAL.

Front 87

Bad debt exp is

Back 87

conta to accounts receivable

Front 88

When writing off bad debt exp in specific charge off method you

Back 88

debt accounts receivable

Front 89

fed income tax is always

Back 89

the first payable.

Front 90

bad debts fit into accounting cycle are

Back 90

adjusting entries

Front 91

will never have an uncollectable account in records with

Back 91

cash basis
only have those accounts with acrual method.

Front 92

Allowance method is a better indication of

Back 92

the net profit of the year.

Front 93

allowance is a

Back 93

contra account and thats how its recorded in balance sheet