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24 Cards in this Set
- Front
- Back
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Accounting Equation |
an equation showing the relationship among assets, liabilities, and owner's equity |
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Adjusting entries |
journal entries recorded to update general ledger accounts at the end of a fiscal period |
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Balance sheet |
a financial statement that reports assets, liabilities, and owner's equity on a specific date |
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Chart of Accounts |
a list of accounts used by a business |
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Closing entries |
journal entries used to prepare temporary accounts for a new fiscal period |
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Post-closing trial balance |
a trial balance prepared after the closing entries are posted |
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Posting |
transferring information from a journal entry to a ledger account |
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Proprietorship |
a business owned by one person |
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Revenue |
an increase in owner's equity resulting from the operation of a business |
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Service business |
a business that performs an activity for a fee |
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Source document |
a business paper from which information is obtained for a journal entry |
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T account |
an accounting device used to analyze transactions |
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Temporary accounts |
accounts used to accumulate information until it is transferred to the owner's capital account |
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Trial balance |
a proof of the equality of debits and credits in a general ledger |
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Work sheet |
a columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
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When the question asks posting reference to journal, it's what? |
False |
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What's the last step of posting procedure? |
Writing the account number. |
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Are the posting references in a journal necessary? Are they the first recorded? |
Yes they are necessary. Yes. |
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When do you replenish petty cash? |
At the end each month.
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What is a blank endorsement? |
Blank endorsement of a financial instrument, such as a cheque, is only a signature, not indicating the payee. The effect of this is that it is payable only to the bearer – legally, it transforms an order instrument ("pay to the order of (the payee)") into a bearer instrument ("pay to the bearer"). |
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What is a special endorsement? |
A special endorsement is used when the payee wants to give their check to a person not named by the remitter. The payee must first endorse the check and then write, “Pay to the order of First Last name.” |
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What is a restricted endorsement? |
A restrictive endorsement or restricted endorsement places a limitation on the use of a check or other negotiable financial instrument. The most common restrictive endorsement is the phrase For Deposit Only written along with the payee's signature on the back of a check. |
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What's the formula for Current Capital Net Income? |
Capital Account Balance + Net Income - Drawing Account Balance = Current Capital. |
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What's the formula for Current Capital Net Loss? |
CAB - Net Loss - DAB = CC |
