Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

20 Cards in this Set

  • Front
  • Back
Owners' (shareholders') equity
the owners' right to the assets of the business
Distributions to the owners (stockholders) of a corporation
prepaid expenses
items such as supplies that will be used in the business in the future
a business owned by one individual
Increases in owner's eqwity as a result of selling services or products to customers
Statement of owners' equity
Represents a summary of the changes that occurred in the entity’s owners equity during a specific time period, such as a month or a year. Increases to owners equity arise from investments by the owner and from net income earned during the period. Decreases result from owner withdrawals and from a net loss for the period. Net income or net losses come directly from the income statement, and owner investments are capital transactions between the business and its owner, so they do not affect the income statement.
an accounting form that is used to record the increases and decreases in each financial statement item
Balance of an account
The amount of the difference between the debits and the credits that have been entered into an account
Amounts entered on the right side of an account
Amounts entered on the left side of an account
General Ledger
The primary ledger, when used in conjunction with subsidiary ledgers, that contains all of the balance sheet and income statement accounts
Horizontal Analysis
Financial analysis that compares an item in a current statement with the same item in prior staements; the percentageof increases and decreases in corresponding items in comparative financial statements
The initial record in which the effects of a transaction are recorded
Journal Entry
the form of recording a transaction in a journal
The process of transferring the debits and credits from the journal entries to the accounts
Slide error
An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20, or $5420.00
Transposition error
An error in which the order of the digitsis changed, such as writing $542 as $452
Trial balance
A summary listing of the titles and balances of accounts in the ledger
Unearned revenue
The liability created by receiving revenue in advance
Vertical analysis
An analysis that compares each item in a current statement with a total amount within the same statement; the percentage analysis of component parts in relation to the total of the parts in a single financial statement