Financial Accounting Test 1 Set 3

Front 1

An accounting system includes a separate record for each item that appears in the financial statements.

Back 1

ledger

Front 2

an amount recorded on the left side of an account.

Back 2

debit

Front 3

an amount recorded on the right side of an account.

Back 3

credit

Front 4

All asset accounts normally have what kind of balances?

Back 4

debit

Front 5

a system of recording every business transaction with equal dollar amounts of both debit and credit entries.

Back 5

double entry accounting

Front 6

in an actual accounting system, the information about each business transaction is initiall recorded in an accounting record called the ------- and is later transferred to the ledger.

Back 6

journal

Front 7

The process of transferring information from the journal to individual accounts in the ledger

Back 7

posting

Front 8

an increase in owners' equity resulting from profitable operations.

Back 8

net income

Front 9

that portion of stockholders' equity resulting from profits earned and retained in the business.

Back 9

retained earnings.

Front 10

a financial statement summarizing the results of operations of a business by matching its revenue and related expenses for a particular accounting period.

Back 10

income

Front 11

the price of goods and services charged to customers for goods and services rendered by a business

Back 11

revenue

Front 12

the generally accepted accounting principle that determines when revenue should be recorded in the accounting records.

Back 12

realization principle

Front 13

the cost of goods and services used up in the process of obtaining revenue.

Back 13

expenses

Front 14

the generally accepted accounting principle that determines when expenses should be recorded in the accounting records.

Back 14

matching principle

Front 15

calls for recording revenue in the period in which it is earned and recording expenses in the period in which they are incurred

Back 15

accrual basis of accounting

Front 16

revenue increases------therefore revenue is recorded by------

Back 16

owners equity; credits

Front 17

expenses decrease -------- there for expenses are recorded by-------

Back 17

owners equity ;debits

Front 18

A distribution of resources by a corporation to its stock holders.

Back 18

dividends

Front 19

a two column schedule listing the names and the debit or credit balances of all accounts in the ledger

Back 19

trial balance

Front 20

the sequence of accounting procedures used to record, classify, and summarize accounting information.

Back 20

accounting cycle