Accounting For Funeral Service

Front 1

ACCOUNT

Back 1

A device for recording the changes (increases or decreases) in the
fundamental accounting elements.

Front 2

ACCOUNT BALANCE

Back 2

The difference between the total debits and the total credits in an account.

Front 3

ACCOUNTANT

Back 3

One who is concerned with the design of the system of records, the
preparation of reports based upon the recorded data, and the interpretation of the reports.

Front 4

ACCOUNTING

Back 4

A language of business employed to communicate financial
information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data.

Front 5

ACCOUNTING CYCLE

Back 5

The process involved in journalizing, posting to the ledger,
taking a trial balance, preparing statements, making adjusting and closing entries, and preparing a post-closing trial balance, which is repeated each fiscal period.

Front 6

ACCOUNTING EQUATION

Back 6

Assets equal Liabilities plus Owner's Equity.

Front 7

ACCOUNT PAYABLE

Back 7

An unwritten promise to pay creditors for property, such as
merchandise, supplies or equipment, purchased on credit, or for services received on credit.

Front 8

ACCOUNT RECEIVABLE

Back 8

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered.

Front 9

ACCOUNTS RECEIVABLE TURNOVER

Back 9

Measures how many times per year
receivables are collected. Calculation: net credit sales divided by Average Accounts Receivable.
Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable)
divided by 2.

Front 10

ACCRUAL ACCOUNTING

Back 10

Recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not.

Front 11

ACCRUED EXPENSE

Back 11

An expense incurred in operating a business during an accounting period, but not yet paid.

Front 12

ACCRUED INCOME

Back 12

Income actually earned during an accounting period but which
will not be received until a future period.

Front 13

ACID TEST RATIO/QUICK RATIO

Back 13

Quick assets divided by current liabilities.

Front 14

ACTIVITY ANALYSIS

Back 14

Measures how efficiently a firm is utilizing its assets.

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ADJUSTED TRIAL BALANCE

Back 15

A trial balance taken after adjusting entries have been recorded.

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ADJUSTING ENTRIES

Back 16

Entries made at the conclusion of a fiscal period to bring accounts up to date.

Front 17

AGE OF ACCOUNTS RECEIVABLE

Back 17

Measures the average time required to collect receivables. Calculation: 360 days divided by Accounts Receivable Turnover

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ALLOWANCE FOR DOUBTFUL ACCOUNTS (ALLOWANCE FOR BAD DEBTS)

Back 18

A contra account utilized to accumulate totals against accounts receivable.

Front 19

ANALYZING

Back 19

Determining the fundamental significance of business transactions so that financial information may be properly processed.

Front 20

ASSETS

Back 20

Property of monetary value owned by a business.

Front 21

BAD DEBTS XPENSE/COLLECTIBLE ACCOUNTS EXPENSE/LOSS FROM
UNCOLLECTIBLE ACCOUNTS

Back 21

Accounts receivable that are uncollectible.

Front 22

BALANCE SHEET/STATEMENT OF FINANCIAL POSITION/STATEMENT OF FINANCIAL CONDITION

Back 22

A formal financial statement illustrating the assets,
liabilities, and owner's equity of a business as of a specific date.

Front 23

BANK DRAFT

Back 23

A check drawn by one bank on another bank in which it has funds
on deposit.

Front 24

BANK STATEMENT RECONCILIATION

Back 24

The process by which the depositor
attempts to reconcile the bank statement balance with the checkbook balance.

Front 25

BANK STATEMENT

Back 25

An itemized listing prepared by the bank of additions to the subtractions from a depositor's account.

Front 26

BANKER'S METHOD/360 DAY METHOD

Back 26

A method of computing interest based
on the assumption that there are 360 days in a year.

Front 27

BLANK ENDORSEMENT

Back 27

The handwritten signature of the payee on the back of the check.

Front 28

BOOKKEEPER/INFORMATION PROCESSOR

Back 28

One who is involved in the process
of recording financial information in a prescribed manner.

Front 29

BOOKKEEPING

Back 29

The recording of financial information in a prescribed manner.

Front 30

BOOK VALUE/UNDEPRECIATED COST

Back 30

The cost of a fixed asset less its
accumulated depreciation.

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BUDGET

Back 31

A formal written statement, which may be based upon adjusted historical
data, of management's plans for the future expressed in financial terms.

Front 32

CALENDAR YEAR

Back 32

A twelve month period beginning January 1st and concluding on December 31st.

Front 33

CANCELED CHECK

Back 33

A check which has been paid by the bank and returned to the drawer for recordkeeping.

Front 34

CASH

Back 34

Coins, currency (paper money), checks, credit card receipts and money orders received from others, as well as money deposited in the bank.

Front 35

CASH BASIS ACCOUNTING

Back 35

An accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid.

Front 36

CASH DISCOUNTS

Back 36

Discounts from quoted prices as an inducement for prompt payment of invoices.

Front 37

CASH PAYMENTS/CASH DISBURSEMENTS

Back 37

Money and money substitutes paid.

Front 38

CASH RECEIPTS JOURNAL

Back 38

A book of original entry in which only cash receipts are recorded.

Front 39

CASH SHORT AND OVER

Back 39

A special ledger account which is used to keep track of unexplained shortages or overages of cash.

Front 40

CASHIERS CHECK

Back 40

A check drawn by a bank on its own funds and signed by an officer of the bank.

Front 41

CERTIFIED CHECK

Back 41

A check which carries the guarantee of the bank that sufficient funds are available to pay the check when it is presented.

Front 42

CERTIFIED PUBLIC ACCOUNTANT/C.P.A.

Back 42

An individual possessing a college
education, having practical experience in accounting and who has passed a comprehensive state examination in order to be certified to practice public accounting in that state.

Front 43

CHART OF ACCOUNTS

Back 43

A list of all the account titles and the account numbers assigned to them.

Front 44

CHECK

Back 44

A piece of commercial paper drawn on funds in a bank account and
payable on demand.

Front 45

CHECK STUB

Back 45

A form on which information is recorded by the drawer of a check
concerning the check drawn; a source document.

Front 46

CHRONOLOGICAL

Back 46

In accounting, to record in order of time.

Front 47

CLASSIFYING

Back 47

The sorting of the many business transactions in an orderly and
systematic manner.

Front 48

CLOSING ENTRIES

Back 48

Entries made at the end of each reporting period to transfer
the balances of the temporary owner's equity accounts to the permanent owner's equity account and to reduce the balance in the temporary owner's equity accounts to zero in preparation for the next accounting period.

Front 49

COMBINATION JOURNAL

Back 49

A book of original entry which combines into one journal the features of the two column general journal and a special journal.

Front 50

COMPOUND JOURNAL ENTRY

Back 50

An accounting entry that involves more than two accounts.

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CONTRA ACCOUNT

Back 51

An account designed to accumulate totals to offset a related account.

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CREDIT

Back 52

The right side of a standard account.

Front 53

CR.

Back 53

The abbreviation for credit.

Front 54

CREDIT BALANCE

Back 54

A condition that occurs when the total of the credits in an account is larger than the total of the debits in that account.

Front 55

CREDIT MEMORANDUM

Back 55

A source document that grants credit to a buyer for purchase return or purchase allowance.

Front 56

CREDITOR

Back 56

A business or individual to whom a debt is owed.

Front 57

CROSS REFERENCING

Back 57

The process of entering the journal page number in the ledger and the ledger account number in the journal.

Front 58

CURRENT ASSETS

Back 58

Cash or other assets that will be converted into cash or consumed within one year.

Front 59

CURRENT ASSET RATIO

Back 59

Current assets divided by current liabilities.

Front 60

CURRENT LIABILITIES

Back 60

Debts of a business that are generally paid within one year.

Front 61

DEBIT

Back 61

The left side of a standard account.

Front 62

DEBIT BALANCE

Back 62

A condition which occurs when the total of the debits in an account is larger than the total of the credits in that account.

Front 63

DEBTOR

Back 63

The business or individual who owes a debt.

Front 64

DEPOSITS IN TRANSIT

Back 64

Deposits that have been made and added to depositor's checkbook, but which have not yet been listed on the bank statement.

Front 65

DEPOSIT TICKET/DEPOSIT SLIP

Back 65

A bank form which lists those cash items (currency and coin) and individual checks to be deposited.

Front 66

DEPRECIATION

Back 66

The loss in value of a fixed asset due to wear and tear and the
passage of time; or, a method of matching the cost of a fixed asset against the revenues that the fixed asset will help produce during its useful life.

Front 67

DEPRECIATION EXPENSE

Back 67

That portion of the original cost of a fixed asset that is assigned as an expense to the reporting period expected to benefit from its use.

Front 68

DISBURSEMENT

Back 68

A payment.

Front 69

DISCOUNT PERIOD

Back 69

A specific number of days during which a discount is available
if the account is paid.

Front 70

DISHONORED CHECK

Back 70

A check not paid by the bank when properly presented.

Front 71

DOUBLE ENTRY ACCOUNTING/DOUBLE ENTRY BOOKKEEPING

Back 71

The process of recording equal debits and credits for a single business transaction.

Front 72

DRAWEE

Back 72

A person or concern, usually a bank, that has been ordered to make a
payment on a check or draft.

Front 73

DRAWER

Back 73

A person (depositor) who signs a check, ordering a payment to be made.

Front 74

DRAWING ACCOUNT/OWNER WITHDRAWALS

Back 74

A separate owner's equity account in which withdrawals of cash or other assets by the owner for personal use are recorded.

Front 75

EMPLOYEE

Back 75

One who is under the control and direction of an employer with regard
to the performance of employment.

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ENDORSEMENT (INDORSEMENT)

Back 76

The signature of the payee or other holder placed on the back of a check or other negotiable instrument.

Front 77

ENDORSER

Back 77

A person or company whose name is written on the back of a check.

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E.O.M.

Back 78

End of month.

Front 79

EXPENSE

Back 79

A decrease in assets, other than withdrawals by the owner, which result
from efforts to produce revenues.

Front 80

FACE OF NOTE

Back 80

The principal sum the maker of a note promises to pay.

Front 81

FEDERAL INCOME TAX WITHHOLDING

Back 81

The amount that an employer must
withhold from an employee's pay for income tax purposes.

Front 82

FEDERAL INSURANCE CONTRIBUTIONS ACT

Back 82

A federal act which requires most
employers and employees to pay taxes to support the federal social security program.

Front 83

FEDERAL UNEMPLOYMENT TAX ACT

Back 83

A federal act imposed upon each
employer for the purpose of financing the administration costs of the federal and state unemployment compensation programs.

Front 84

F.I.C.A.

Back 84

Abbreviation for Federal Insurance Contributions Act.

Front 85

FINAL PROCESSING/REPORTING

Back 85

The process of communicating the results achieved during an accounting period to others.

Front 86

FISCAL PERIOD

Back 86

A period of time covered by an income statement.

Front 87

FIXED ASSETS/LONG TERM ASSETS

Back 87

Property of a relatively permanent nature used in the operation of a business and not intended for resale.

Front 88

FIXED LIABILITIES/LONG TERM LIABILITIES

Back 88

Liabilities that are not due and
payable within one year.

Front 89

FOOTING/PENCIL FOOTING

Back 89

A total, written in small pencil figures, under the last entry in a column of an account.

Front 90

F.U.T.A.

Back 90

Federal Unemployment Tax Act.GENERAL JOURNAL

Front 91

GENERAL JOURNAL

Back 91

A book of original entry in which business transactions are
recorded in chronological order.

Front 92

GENERAL LEDGER

Back 92

The book of accounts.

Front 93

GROSS EARNINGS/GROSS PAY

Back 93

Income before any deductions have been made.

Front 94

GROSS PROFIT/GROSS MARGIN

Back 94

Net sales minus the cost of goods sold.

Front 95

GROSS PROFIT PERCENTAGE

Back 95

Gross profit divided by net sales.

Front 96

IN BALANCE

Back 96

A condition in which the total of the debits and the total of the credits
are equal in an account.

Front 97

INCOME/REVENUE

Back 97

An inflow of assets as a result of selling a product or providing
a service.

Front 98

INCOME STATEMENT/PROFIT AND LOSS STATEMENT/STATEMENT OF
OPERATIONS/OPERATING STATEMENT

Back 98

A formal financial statement which
presents the income, expenses, and resulting net profit or net loss for a given period.

Front 99

INCOME TAX

Back 99

A tax levied on the earnings of individuals and businesses by
federal, state, and local governments.

Front 100

INDEPENDENT CONTRACTOR

Back 100

Any person who agrees to perform a service for a fee and who is not subject to the control of those for whom the service is performed.

Front 101

INTANGIBLE ASSETS

Back 101

Those assets that cannot be touched or grasped (examples include patents, copyrights and goodwill).

Front 102

INTEREST

Back 102

Money paid for the use of money.

Front 103

INTERPRETING

Back 103

Explaining the significant events or developments that occur,
usually taking the form of analysis and comparisons.

Front 104

INVENTORY TURNOVER

Back 104

The number of times the average inventory has been
sold or used up (turned over) during a period. Calculation: 365__________________
Cost of Goods Sold for Period/Average Inventory Note: Average Inventory = (Beginning Inventory + Ending Inventory) divided by 2

Front 105

INVENTORY

Back 105

A source document showing quantity, description, prices of items,
total amount of purchase and the terms of payment.

Front 106

JOURNALIZING

Back 106

The process of recording business transactions in a journal.

Front 107

LIABILITIES

Back 107

Any debts that a business owes.

Front 108

LIQUIDITY ANALYSIS

Back 108

Measures the ability of the firm to meet its current obligations.

Front 109

MAKER

Back 109

An individual who promises to pay on a promissory note; an individual who
signs a promissory note.

Front 110

MATURITY DATE

Back 110

The date on which payment is due on a promissory note.

Front 111

MERCHANDISE/INVENTORY

Back 111

Goods purchased for resale at a profit.

Front 112

MORTGAGE PAYABLE

Back 112

A long term liability; a written promise that pledges real property as security for payment of a debt.

Front 113

N.S.F.

Back 113

Not Sufficient Funds.

Front 114

NET INCOME/NET PROFIT

Back 114

The difference between gross profit and expenses when gross profit is larger.

Front 115

NET LOSS

Back 115

The difference between gross profit and expenses when expenses are
larger.

Front 116

NET PAY/NET EARNINGS

Back 116

Gross pay less payroll deductions; an employee's take home pay.

Front 117

NET PURCHASES

Back 117

Purchases minus purchases returns and allowances minus
purchase discounts

Front 118

NET SALES

Back 118

Sales minus sales returns and allowances minus sales discounts.

Front 119

NOTE PAYABLE

Back 119

A written promise to pay a creditor a certain amount in the future.

Front 120

NOTE RECEIVABLE

Back 120

A written promise of a customer to pay the business a sum of
money at a future date.

Front 121

OPERATING EXPENSES/OVERHEAD

Back 121

Expenses incurred in the normal operation of a business.

Front 122

ORIGINAL COST BASIS

Back 122

The amount originally paid for a depreciable asset.

Front 123

OTHER EXPENSES

Back 123

Expenses incurred that are not the direct result of regular trading activities of a business.

Front 124

OTHER INCOME

Back 124

Income received that is not the direct result of regular trading
activities of a business.

Front 125

OUTSTANDING CHECKS

Back 125

Checks that have been drawn and subtracted from the depositor's checkbook, but which have not yet been presented to the bank for payment.

Front 126

OWNER'S EQUITY/NET WORTH/CAPITAL/PROPRIETORSHIP

Back 126

The amount by which the total assets exceed the total liabilities of a business; an owner's financial interest in a business.

Front 127

OVERDRAFT

Back 127

The issuance of a check without sufficient funds in the account when
it is presented for payment.

Front 128

PAYEE

Back 128

A person or company who will receive payment on a promissory note,
check, draft or money order.

Front 129

PETTY CASH FUND

Back 129

A fund of currency and coin established for the payment of
small amounts of money.

Front 130

PETTY CASH VOUCHER

Back 130

A form used to reflect payments from the petty cash fund.

Front 131

POST CLOSING TRIAL BALANCE

Back 131

A work paper prepared after all temporary owner's equity accounts have been closed and all permanent accounts have been balanced and ruled, proving the equality of the debits and credits.

Front 132

POSTDATED CHECK

Back 132

A check dated subsequent to (following) its date of issuance.

Front 133

POSTING

Back 133

The transferral of data from the journal to the ledger.

Front 134

PREPAID EXPENSES

Back 134

Items which are considered to be assets when acquired, but
which will become expenses when consumed or expired.

Front 135

PRINCIPAL

Back 135

The face value of a promissory note upon which interest is computed.

Front 136

PROFIT MARGIN

Back 136

Net income divided by net sales.

Front 137

PROFITABILITY ANALYSIS

Back 137

Provides evidence concerning the earnings potential of a company and how effectively the firm is being managed.

Front 138

PROMISSORY NOTE

Back 138

A written promise made by a person or business to pay a certain sum of money to another person or business at a specified time in the future.

Front 139

PROVING THE JOURNAL

Back 139

A process which examines each page of a journal, confirming that the debit entries equal the credit entries on each page.

Front 140

PROVING CASH

Back 140

The process of determining whether the amount of cash, both on
hand and in the bank, is the same as that which is indicated in the accounting records.

Front 141

PURCHASE INVOICE

Back 141

A source document prepared by the seller listing the items
shipped, their cost and the method of shipment (from the buyer's viewpoint).

Front 142

PURCHASE ORDER

Back 142

A written order by a buyer for merchandise or other property
specified in the purchase requisition.

Front 143

PURCHASE REQUISITION

Back 143

A form used to request the responsible person or department to purchase merchandise or other property.

Front 144

PURCHASES

Back 144

A temporary owner's equity account used to record the buying of
merchandise for resale.

Front 145

PURCHASES DISCOUNTS

Back 145

A temporary owner's equity contra account used to record discounts taken on inventory purchases; the amount of any discounts
granted by suppliers to encourage prompt payment of their invoices.

Front 146

PURCHASES JOURNAL

Back 146

A book of original entry used to record purchases of merchandise on credit only.

Front 147

PURCHASES RETURNS AND ALLOWANCES

Back 147

A temporary owner's equity contra
account utilized to record the return of merchandise to the manufacturer or supplier as the result of material defects in workmanship and/or inferior product quality.

Front 148

QUARTERLY

Back 148

A three-month period.

Front 149

QUICK ASSETS

Back 149

Cash, marketable securities, accounts and notes receivable.

Front 150

RATE

Back 150

The annual percentage rate used to compute interest.

Front 151

RECORDING/DATA ENTRY

Back 151

The committing of a business transaction and the events surrounding such into writing.

Front 152

RESTRICTIVE ENDORSEMENT

Back 152

An endorsement which limits the use of funds to the purpose stated. (Example: "For Deposit Only")

Front 153

RETAIL SALES TAX

Back 153

A tax imposed on tangible personal property sold at retail.

Front 154

SALARY

Back 154

Generally considered to be compensation for managerial or administrative services, expressed in terms of a month or year.

Front 155

SALES

Back 155

A temporary owner's equity account used to record the earning of revenue.

Front 156

SALES DISCOUNT

Back 156

A temporary owner's equity contra account used to record discounts given to customers as an incentive for prompt payment.

Front 157

SALES INVOICE

Back 157

A source document prepared by the seller that lists the items shipped, their cost and the method of shipment (from the seller's viewpoint).

Front 158

SALES JOURNAL

Back 158

A book of original entry used for the recording of sales of merchandise on credit only.

Front 159

SALES RETURNS AND ALLOWANCES

Back 159

A temporary owner's equity contra
account used to record credit given to a customer for shortages or damaged goods.

Front 160

SOURCE DOCUMENT/BUSINESS PAPER

Back 160

The first record of a business
transaction, such as check stubs, receipts, sales invoices, purchase invoices, cash register tapes, etc.

Front 161

SPECIAL JOURNAL

Back 161

A special journal designed to accumulate data about only one
kind of business transaction.

Front 162

STATEMENT OF ACCOUNT

Back 162

A report sent to each customer, usually at the end of the month, which indicates the status of their account.

Front 163

STATEMENT OF OWNER'S EQUITY/STATEMENT OF NET WORTH

Back 163

A formal financial statement which summarizes all of the changes in owner's equity during a specified period of time.

Front 164

STRAIGHT LINE DEPRECIATION

Back 164

A method in which the depreciable cost basis
(original cost basis less salvage value) of an asset is apportioned equally over its estimated useful life expressed in terms of months or years.

Front 165

STOP PAYMENT ORDER

Back 165

An order by a depositor requesting a bank not to pay on a check previously issued.

Front 166

SUMMARIZING

Back 166

Bringing accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements.

Front 167

SUPPLIES

Back 167

A type of asset that will be consumed as it is used. (Examples:
embalming supplies and office supplies).

Front 168

S.U.T.A.

Back 168

State Unemployment Tax Act.

Front 169

T ACCOUNT

Back 169

A skeleton form of an account used for instructional purposes.

Front 170

TAKE HOME PAY/NET PAY

Back 170

The amount of pay after deductions (income taxes, F.I.C.A. taxes, etc.) have been subtracted.

Front 171

TANGIBLE ASSETS

Back 171

Those assets that can be appraised by value or seen or touched.

Front 172

TEMPORARY OWNER'S EQUITY ACCOUNTS

Back 172

Accounts utilized to accumulate
income, expenses and owner's withdrawals for one accounting period only.

Front 173

TIME/TERM OF NOTE

Back 173

The period of time from the date of the note to the maturity date.

Front 174

TRANSACTION

Back 174

Any activity of a business enterprise that involves the exchange of
values.

Front 175

TRANSACTION ANALYSIS

Back 175

The effect of transactions on the accounting elements.

Front 176

TRANSPOSITION ERROR

Back 176

An amount written with the digits in incorrect order.

Front 177

TRIAL BALANCE

Back 177

A work paper proving the equality of the debit and credit balances in the ledger.

Front 178

USEFUL LIFE

Back 178

The estimated determinable life of a fixed asset.

Front 179

W-2 FORM

Back 179

Wage and Tax Statement; a report furnished by the employer for each
employee indicating gross earnings and deductions for income and F.I.C.A. taxes.

Front 180

W-4 FORM

Back 180

Employees' Withholding Allowance Certificate.

Front 181

WAGE

Back 181

A form of compensation usually for skilled and unskilled labor, expressed in terms of hours, weeks or pieces completed.

Front 182

WORKSHEET

Back 182

An expanded trial balance utilized for computing, classifying, and
sorting account balances before preparing the formal financial statements.