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24 Cards in this Set
- Front
- Back
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Accounting Equation
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An equation showing the relationship among assets, liabilities, and owner's equity.
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Adjusting Entries
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Journal entries recorded to update general ledger accounts at the end of a fiscal period.
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Balance Sheet
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A financial statement that reports assets, liabilities, and owner's equity on a specific date.
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Chart of Accounts
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A list of accouts used by a business.
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Closing Entries
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Journal entries used to prepare temporary accounts for a new fiscal period.
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Post-Closing Trial Balance
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A trial balance prepared after the closing entries are posted.
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Posting
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Transferring information from a journal entry to a ledger account.
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Proprietorship
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A business owned by one person.
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Revenue
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An increase in owner's equity resulting from the operation of a business.
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Service Business
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A business in which income is produced chiefly by personal services rendered.
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Source Document
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A business paper from which information is obtained for a journal entry.
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T-Account
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An accounting device used to analyze transactions.
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Temporary Accounts
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Accounts used to accumulate information until it is transferred to the owner's capital account.
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Trial Balance
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A proof of the equality of debits and credits in a general ledger.
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Net Income
(Formula) |
(Total Revenue)
-(Total Expenses) |
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Total Expenses Component Percentage
(Formula) |
((Total Expenses)
/(Total Sales)) *100 |
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Net Income Component Percentage
(Formula) |
((Net Income)
-(Total Sales) * 100) |
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Current Capital
(Formula) |
(Capital Account Balance)
± (Net Income+ or NetLoss-) - (Drawing Balance) |
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Adequate Disclosure
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Financial statements contain all of the information necessary to understand a business's financial condition.
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Going Concern
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Financial statements are prepared with the expectation it will stay in business.
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Objective Evidence
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A source document is prepared for each transaction.
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Accounting Period Cycle
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Changes in financial information are reported for a specific period of time in the form of financial statements.
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Blank Endorsement
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Special Endorsement
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