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
Reading...
Front

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

image

Play button

image

Play button

image

Progress

1/25

Click to flip

25 Cards in this Set

  • Front
  • Back
Account
An accounting form that is used to record the increases and decreases in each financial statement item.
Assets
The resources owned by a business.
Balance of the Account
The amount of the difference between the debits and the credits that have been entered.
Chart of Accounts
A list of the accounts in the ledger.
Credits
Amounts entered on the right side of an account.
Debits
Amounts entered on the left side of an account.
Double-Entry Accounting
A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits.
Drawing
The account used to record amounts withdrawn by an owner of proprietorship.
Expenses
Assets used up or services consumed in the process of generating revenues.
Horizontal Analysis
Financial analysis that compares an item in a current statement with the same item in prior statements.
Journal
The initial record in which the effects of a transaction are recorded.
Journal Entry
The form of recording a transaction in a journal.
Journalizing
The process of recording a transaction in the journal.
Ledger
A group of accounts for a business.
Liabilities
The rights of creditors that represent debts of the business.
Materiality Concept
A concept of accounting that implies that an error may be treated in the easiest possible way.
Owner's Equity
The owner's right to the assets of the business.
Posting
The process of transferring the debits and credits from the journal entries to the accounts.
Revenues
Increases in owner's equity as a result of selling services or products to customers.
Slide
An error in which the entire number is moved one or more spaces to the right or left, such as writing $542.00 as $54.20 or $5,420.00.
T Account
The simplest form of an account.
Transposition
An error in which the order of the digits is changed, such as writing $542 as $452 or $524.
Trial Balance
A summary listing of the titles and balances of accounts in the ledger.
Two-Column Journal
An all-purpose journal.
Unearned Revenue
Items that have been initially recorded as liabilities but are expected to become revenues over time or through the normal operations of the business.