Accounting Ii Semester Vocabulary Review

Front 1

uncollectible accounts

Back 1

Receivables or other debts that have virtually no chance of being paid from the customer.

Front 2

adjusting entries

Back 2

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

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closing entries

Back 3

Journal entries used to prepare temporary accounts for a new fiscal period.

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reversing entries

Back 4

An entry made at the beginning of one fiscal period to reverse an adjusting entry made in the previous fiscal period.

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writing off an account

Back 5

Cancelling the balance of a customer account because the customer does not pay.

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real property

Back 6

Land and anything attached to the land.

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personal property

Back 7

All property not classified as real property.

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assessed value

Back 8

The value of an asset determined by tax authorities for the purpose of calculating taxes.

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straight line depreciation

Back 9

Charging an equal amount of depreciation expense for a plant asset in each year of useful life.

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estimated salvage value

Back 10

The amount an owner expects to receive when a plant asset is removed from use.

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estimated useful life

Back 11

Lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

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accumulated depreciation

Back 12

The total amount of depreciation expense that has been recorded since the purchase of a plant asset.

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book value

Back 13

The difference between an asset’s account balance and its related contra account balance.

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plant asset record

Back 14

An accounting form on which a business records information about each plant asset.

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plant asset

Back 15

Assets that will be used for a number of years in the operation of a business.

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gain on plant assets

Back 16

Revenue that results when a plant asset is sold for more than book value.

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loss on plant assets

Back 17

The loss that results when a plant asset is sold for less than book value.

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declining balance method of depreciation

Back 18

Multiplying the book value by a constant depreciation rate at the end of each fiscal period.

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periodic inventory

Back 19

A merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand.

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perpetual inventory

Back 20

A merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand.

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inventory record

Back 21

A form used during a periodic inventory to record information about each item of merchandise on hand.

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stock record

Back 22

A form used to show the kidn of merchandise, quantity received, quantity sold, and balance on hand.

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stock ledger

Back 23

A file of stock records for all merchandise on hand.

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inventory record

Back 24

A form used during a periodic inventory to record information about each item of merchandise on hand.

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FIFO

Back 25

Price of merchandise purchased first to calculate the cost of merchandise sold first.

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LIFO

Back 26

Price of merchandise purchased last to calculate the cost of merchandise sold first.

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Average weighted inventory

Back 27

Method divides the cost of goods available for sale by the number of units available for sale.

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gross profit method of estimating inventory

Back 28

Estimating inventory by using the previous year’s percentage of gross profit on operations.

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promissory note

Back 29

A written and signed promise to pay a sum of money at a specified time.

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creditor

Back 30

A person or organization to whom a liability it owed.

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notes payable

Back 31

Promissory notes signed by a business and given to a creditor.

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interest

Back 32

An amount paid for the use of money for a period of time.

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current liabilities

Back 33

Liabilities due within a short time, usually a year.

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interest expense

Back 34

The interest accrued on money borrowed.

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notes receivable

Back 35

Promissory notes that a business accepts from customers.

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interest income

Back 36

The interest earned on money loaned.

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dishonored note

Back 37

A note that is not paid when due.

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accrued revenue

Back 38

Revenue earned in one fiscal period but not received until a later fiscal period.

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accrued interest income

Back 39

Interest earned but not yet received.

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accrued expenses

Back 40

Expenses incurred in one fiscal period but not paid until a later fiscal period.

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accrued interest expense

Back 41

Interest incurred but not yet paid.

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component percentage

Back 42

The percentage relationship between one financial statement item and the total that includes that item.

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income statement

Back 43

A financial statement showing the revenue and expenses for a fiscal period.

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balance sheet

Back 44

A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

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statement of stockholder’s equity

Back 45

A financial statement that shows changes in a corporation’s ownership for a fiscal period.

Front 46

long term liabilities

Back 46

Liabilities owed for more than a year.

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working capital

Back 47

The amount of total current assets less total current liabilities.

Front 48

current ratio

Back 48

A ratio that shows the numeric relationship of current assets to current liabilities.