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83 Cards in this Set

  • Front
  • Back
Planning, Recording, analyzing and interpreting financial information.
planned process for providing financial information that will be useful to a management
accounting system
organized summaries of a businesses financial activites
accounting records
business that perfroms and activity for a fee
service business
a business owned by one person
anything of value that is owned
financial rights to the assets of a business
an amount owed by a business
the amount remaining after the value of all liabilites is subtracted from the value of all assets
owners' equity
an equation showing the relationship among assets, liabilites and owners equity
assets+liabilites=owners equity
accounting equation
a business activity that changes assets, liabilites, or owners equity
a record summarzing all information pertaining to a single item in the accounting equation
the name given to an account
account title
the amount in an account
account balance
the account used to summarize the owner's equity
a financial statement that reports assets, liabilites, and owners equity on a specific date
balance sheet
an increase in owners equity resulting from the operation of a business
a sale for which cash will be received at a later date
sale on account
a decrease in the owners equity resulting from the the operation of a business
assets taken out of a business for the owners personal use
an accounting device used to analyize transactions
T account
an amount recorded on the right side of a T account
an amount recorded on the left side of a T account
a list of accounts used by a business
chart of accounts
a form for recording transactions in chronogical order
recording transactions in a journal
information for each transaction recorded in a journal
a journal with two amount colums in which all kinds of entries can be rocorded
general journal
recording of debit and credit parts of a transaction
double-entry accounting
a business paper from which information is obtained for a journal entry
source document
a form describing the goods or services sold, the quantity, and the preice
an invoice used as a source document for recording a sale on account
sale invoice
a business form giving written acknowledgement for cash received
a form for which a breif message is written describing a transaction
a group of accounts
a ledger that contains all accounts needed to prepare financial statements
general ledger
the number assigned to an account
account number
the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records
file maintenance
writing an account title and number on the heading of an account
opening an account
transferring information from a journal to a ledger
determining the amount of cash agrees with the balance of the cash account in the accounting records
proving cash
a journal entry made to correct an error in the ledger
correcting entry
a bank account from which payments can be ordered by a depoister
checking account
a signature or stamp on the back of a check transfering ownership
an endorsement consisting only of the endorsers signature
blank endorsement
an endorsement indicating a new owner of a check
special endorsement
an endorsement restricing further transfer of a checks ownership
restrictive endorsement
a report of deposits, withdrawls, and bank balances send to a depositor by a bank
bank statement
a check that a bank refuses to pay
dishonored check
a computerized cash payment system that usues electronic impulses to transfer funds
electronic funds transfer
a bank card that when making purchases automatically deducts the amount of the purchase from the checking account of the cardholder
debit card
a form showing proof of a petty cash payment
petty cash slip
an amount of cah kept on hand and used for making small payments
petty cash
the length of time for which a business summarizes and reports financial information
fiscal period
a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
work sheets
a proof of equality of debits and credits in a general ledger
trial balance
changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period
a financial statement showing the revenue and expenses for a fiscal period
income statement
the difference between total revenue and total expense when total revenue is greater
net income
the difference between total revenue and total expenses when total expenses is greater
net loss
the percentage relationship between one financial statement item and the total that includes that item
component percentage
journal entries recorded to updare general ledger accounts at the end of a fiscal period
adjusting entries
accounts used to accumulate information from one fiscal period to the next
permanent accounts
accounts used to accumulate information untill it is transferred to the owners capital account
temporary accounts
journal entries used to prepare temporary accounts for a new fiscal period
closing entries
a trial balance prepared after the closing entries are posted
post-closing trial balance
the series of accounting activites included in recording financial information for a fiscal period
accounting cycle
a business in which two or more persons comine their assets and skills
each member of a partnership
a business that purchases and sells goods
merchandising business
a merchandising business that sells to those who use or consume the goods
retail merchandising business
goods that a merchandising business purchases to sell
a business that buys and resells merchandise to retail merchandising business
wholesale merchandising business
a journal used to record only one kind of transaction
special journal
the price a business pays for goods it purchases to sell
cost of merchandise
the amount added to the cost of the merchandise to establish the selling price
a business from which merchandise is purchased or supplies or other assets are brought
a special journal used to record only purchases of merchandise on account
purchases journal
a journal amount column headed with an account title
special amount colums
an invoice used as a source document for recording a purchase on account transaction
purchase invoice
an agreement between a buyer and a seller about payment for merchandise
terms of sale
a special journal used to record only cash payment transactions
cash payments journal
a journal ammount column that is not headed with an account title
general amount column