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205 Cards in this Set
- Front
- Back
____ can help you identify preferences that will have an impact on your career choice.
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personal interest tests
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A(n) ____ operates to support a cause or an interest.
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not-for-profit organization
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A(n) ____ is work that is built on a foundation of interest, knowledge, training, and experience.
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career
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A person's ____ are his or her abilities, such as the ability to think creatively or to make decisions.
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skills
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____ refers to the way a person uses his or her time, energy, and resources.
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lifestyle
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A(n) ____ firm provides accounting services to clients such as individuals or businesses.
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public accounting
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Your ____ is the set of unique qualities that makes you different from all other people.
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personality
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A(n) ____ operates to earn money for its owners.
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for-profit business
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The sharing of information and advice is called ____.
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networking
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In a(n) ____, people are free to produce the goods and services they choose.
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free enterprise system
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If a business spends more money to operate than it earns from the sale of goods or services, it is operating at a(n) ____.
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loss
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A business that produces items to sell to individuals and other businesses is known as a(n) ____.
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manufacturing business
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A(n) ____ is a business organization that must get permission from the state to operate.
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corporation
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Under the ____ accounting assumption, a business owner must keep the financial records for the business separate from personal records.
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business entity
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____ is the legal document giving a business the right to operate as a corporation.
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charter
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____ is money invested in a business by its owner(s) or the money provided by banks or investors.
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capital
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The ____ is designed to collect, document, and report on the financial transactions affecting the business.
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accounting system
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The ____ is the period of time covered by an accounting report.
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accounting period
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Following the ____ accounting assumption, the accountant prepares reports as though the business will operate indefinitely.
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going concern
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____ summarize information about the financial status of a business.
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financial reports
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A(n) ____ is an individual who transforms ideas for products or services into real-world businesses.
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entrepreneur
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An economic event that causes a change in assets, liabilities, or owner's equity is called a(n) ____.
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business transaction
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Income earned from the sale of goods and services is called ____.
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revenue
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Assets = Liabilities + Owner's Equity is called the ____.
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accounting equation
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____ are the prices paid for goods or services used to operate a business.
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expenses
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A business that provides a needed service for a fee is called a(n) ____.
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service business
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A business that two or more people agree to own together is a(n) ____.
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partnership
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____ is concerned with preparing information for internal users.
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management accounting
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A(n) ____ buys finished goods and sells them to individuals or other businesses.
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merchandising business
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____ is concerned with preparing reports for external users such as investors or creditors.
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financial accounting
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A business is operating at a(n) ____ if it earns more money than it spends.
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profit
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____ are the rules accountants follow when recording and reporting accounting information.
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GAAP
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A business with a single owner is a(n) ____.
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sole proprietorship
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Billed a client for replacement eyeglasses.
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Increases an asset and increases owner’s equity
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Made a part payment on account for office furniture purchased earlier.
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Decreases an asset and decreases a liability
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Paid wages for optical assistants.
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Decreases an asset and decreases owner’s equity
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Received cash for an eye exam.
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Increases an asset and increases owner’s equity
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Salam bought equipment for use in the business with cash, $1,850.
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Increases an asset and decreases an asset
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Any property or item of value owned by a business is a(n) ____.
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asset
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When an owner takes cash or other assets out of a business for personal use, the transaction is called a(n) ____.
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withdrawal
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The debts of a business are called its ____.
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liabilities
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Anything of value that is owned or controlled by an individual or a business is called ____.
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property
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The total amount of money to be received in the future for goods or services sold on credit is the ____.
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accounts receivable
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The owner's investment in the business is represented by the ____ account.
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capital
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____ is the amount of money owed to a business's creditors.
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accounts payable
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When a business follows the GAAP of ____, revenue is recorded on the date it is earned.
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revenue recognition
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A(n) ____ occurs when the owner takes assets out of the business for personal use.
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withdrawal
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The dollar balance of a(n) ____ account is carried forward from one period to the next.
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permanent
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Money a business earns from the sale of goods or services is the ____.
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revenue
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The balance of a(n) ____ account does not carry forward to the next accounting period.
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temporary capital
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The costs of doing business are known as ____.
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expenses
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The ____ is an "official" list of all the accounts used by a business to record its transactions.
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chart of accounts
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An amount entered on the right side of an account is a(n) ____.
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credit
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____ requires a debit and a credit for each transaction.
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double-entry accounting
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The amount entered on the left side of an account is the ____.
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debit
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A(n) ____ is a tool used to analyze a business transaction's effect on an account.
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T account
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If you meant to write $27 but wrote $72, this mistake is called a(n) ____.
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transposition error
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trial balance
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Transferring data from the journal to the ledger is called ____.
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posting
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Errors discovered after posting has taken place require a(n) ____.
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correcting entry
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If you were to write $190 as either $19 or $1,900, this mistake would be called a(n) ____.
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slide
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A(n) ____ accounting period begins on January 1 and ends on December 31.
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calendar year
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Another term used for "recording" a business transaction is ____.
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journalizing
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A(n) ____ is any type of business paper that verifies that a transaction occurred.
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source document
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The various activities a business completes to organize its accounting records in an orderly fashion is called the ____.
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accounting cycle
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The ____ is an all-purpose journal used for recording business transactions.
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general journal
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A(n) ____ is often called a book of original entry.
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A(n) ____ is an accounting period of twelve months ending on the last day of any month except December.
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fiscal year
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The first two columns on the work sheet are used to enter the ____.
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trial balance
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A(n) ____ is a paper used to collect information from the general ledger accounts.
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work sheet
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The ____ allows a business to match revenue against expenses as a means of measuring profit for the period.
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matching principle
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Revenue and expense accounts are listed in the Trial Balance section of the work sheet and in the ____ of the work sheet.
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Income Statement section
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A net loss is entered in the ____ column of the Income Statement section of the work sheet.
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credit
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____ means drawing a line under a column of amounts.
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ruling
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The asset, liability, and owner's equity accounts are extended to the ____ of the work sheet.
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Balance Sheet section
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A(n) ____ results when revenue is larger than expenses.
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net income
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Whether accounts are kept manually in a special file or electronically on magnetic disks or tapes, the ledger is often called a(n) ____.
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general ledger
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The accounting stationery used to record financial information about specific accounts is a(n) ____.
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ledger account form
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Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called ____.
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proving the ledger
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The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n) ____.
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ledger
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The first two columns on the work sheet are used to enter the ____.
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trial balance
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A(n) ____ is a paper used to collect information from the general ledger accounts.
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work sheet
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Revenue and expense accounts are listed in the Trial Balance section of the work sheet and in the ____ of the work sheet.
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Income Statement section
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A net loss is entered in the ____ column of the Income Statement section of the work sheet.
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credit
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____ means drawing a line under a column of amounts.
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ruling
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The asset, liability, and owner's equity accounts are extended to the ____ of the work sheet.
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Balance Sheet section
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A(n) ____ results when revenue is larger than expenses.
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net income
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Whether accounts are kept manually in a special file or electronically on magnetic disks or tapes, the ledger is often called a(n) ____.
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general ledger
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The accounting stationery used to record financial information about specific accounts is a(n) ____.
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ledger account form
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Adding all the debit balances and all the credit balances and then comparing the two totals to see whether they are equal is called ____.
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proving the ledger
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The accounts used by a business can be kept on pages or cards, which are kept together in a book or file called a(n) ____.
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ledger
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In the ____, the classifications of balance sheet accounts are shown one under the other.
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report form
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A(n) ____ is the financial statement that reports the final balances in all asset, liability, and owner's equity accounts at the end of the accounting period.
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balance sheet
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____ is reported on the income statement.
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net income or net loss
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____ is a comparison of two items on a financial statement, resulting in a percentage that is used to evaluate the relationship between the two items.
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ratio analysis
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____ summarize the changes resulting from business transactions that have occurred during an accounting period.
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financial statements
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Income Statement section of the work sheet
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The balance sheet reports financial information ____.
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on a specific date
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The ____ of the work sheet answers the questions "who?", "what?", and "when?".
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heading
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The amount of net income for the period is added to the Balance Sheet credit total because it increases the balance in the ____ account.
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capital
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If the total of the credit column of the Income Statement section is less than the debit column, there is a(n) ____ for the period.
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trial balance
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____ is transferring balances from the Trial Balance section of the work sheet to either the Balance Sheet section or the Income Statement section.
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extending
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If there is a net loss for the period, it is entered in the ____ column of the Balance Sheet section of the work sheet.
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debit
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An itemized record of all the transactions occurring in a depositor's account over a given period is a(n) ____.
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bank statement
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The ____ enables banks to transfers quickly and accurately from one account to another account without the immediate exchange of checks.
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electronic funds transfer system
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____ are made to close out or reduce to zero the balance of certain general ledger accounts.
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closing entries
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A(n) ____ is prepared to prove that debits in the ledger accounts are equal to the credits after the closing entries have been posted.
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post-closing trial balance
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Only ____ and their balances are listed on the post-closing trial balance.
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permanent accounts
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The ____ is a general ledger account used to accumulate and summarize the revenue and expenses for a period.
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Income Summary account
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A(n) ____ is a journal entry with two or more debits or two or more credits.
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compound entry
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Accounts that start an accounting period with zero balances are called ____.
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temporary capital accounts
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____ indicates what percentage of net sales represents profit.
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return on sales
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income statement
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The ____ is completed as a support document for the balance sheet.
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statement of changes in owner's equity
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One source of information for completing the balance sheet is the ____.
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Balance Sheet section of the work sheet
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____ are steps that a business takes to protect its cash and other assets.
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internal controls
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The bank form on which the currency and checks to be deposited are listed is known as the ____.
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deposit slip
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A(n) ____ is an authorized signature that is written or stamped on the back of a check.
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endorsement
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____ are checks that have been written but not yet presented to the bank for payment.
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outstanding checks
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The ____ is the person or business to whom a check is written.
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payee
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____ are checks that are paid by the bank, deducted from the depositor's account, and returned with the bank statement.
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canceled checks
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The person who signs a check is the ____.
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drawer
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A(n) ____is a check returned by the bank because there are not sufficient funds in the drawer's checking account to cover the amount of the check.
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NSF check
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The bank on which a check is written is the ____.
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drawee
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A(n) ____ is a fee charged by the bank for maintaining bank records and for processing bank statement items for the depositor.
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bank service charge
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The practice of marking a check that contains an error so that it will not be used is known as ____.
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voiding a check
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____ are the outside controls a business can use to protect its cash and other assets.
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external controls
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If an employee has ____,the employer placed the employee's net pay into their personal bank account.
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direct deposit
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The individual who prepares the payroll is called the ____.
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payroll clerk
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The amount deducted from gross earnings for federal income tax each pay period depends on the total earnings, marital status, and the number of ____ an employee claims on Form W-4.
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exemptions
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The amount of money actually received by the employee after all deductions are subtracted is called the ____.
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net pay
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The ____ is an individual payroll record kept for each employee.
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employee's earnings record
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The amount of time for which an employee is paid is called the ____.
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pay period
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A(n) ____ is paid to the employee as a percentage of the employee's sales.
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commission
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A(n) ____ endorsement limits how a check may be handled to protect the check from being cashed by anyone except the payee.
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restrictive
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A(n) ____ is a person or business that has cash on deposit at a bank.
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depositor
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____ are deposits that have been made and recorded in the checkbook but that do not appear on the bank statement.
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outstanding deposits
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A(n) ____ is a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the order.
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check
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____ is the process of determining any differences between the balance shown on the bank statement and the checkbook balance.
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reconciling the bank statement
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The expense account used to record employees' earnings is often called ____.
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Salaries Expense
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The form that accompanies an employer's payment of social security, medicare, and employees' federal income taxes is a(n) ____.
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federal tax deposit coupon
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A list of employees in a business and the earnings due to each employee for a specific period of time is a(n) ____.
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payroll
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A(n) ____ is an amount subtracted from gross earnings.
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deduction
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A(n) ____ is a fixed amount of money paid to an employee each pay period.
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salary
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____ are the year-to-date gross earnings of an employee.
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accumulated earnings
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The ____ is the total amount earned by the employee in the pay period.
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gross earnings
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An employee paid 1 1/2 times the regular wage is paid at a(n) ____.
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overtime rate
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A(n) ____ is a device used to scan certain information encoded on a magnetic strip on an employee's time card or identification badge.
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electronic badge readers
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Most companies use a(n) ____ to keep track of an hourly wage employee's hours.
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time card
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A(n) ____ is a form summarizing information about employees' earnings for each pay period.
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payroll register
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An amount of money paid to employees at a specific rate per hour is a(n) ____.
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wage
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Full credit or a cash refund granted by a merchant to a customer for unsatisfactory merchandise is a(n) ____.
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sales return
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A levy imposed by most states on the retail sales price of goods and services is a(n) ____.
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sales tax
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Charge customers often use a(n) ____ when they make a purchase on account.
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credit card
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A business that sells to the final user is known as a ____.
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retailer
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A(n) ____ occurs when a customer buys an item with a promise to pay for it later.
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sale on account
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The customer to whom a sale on account is made is called a(n) ____.
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charge customer
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A reduction in a sales invoice that is given to a customer for prompt payment is a ____.
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sales discount
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A business that buys goods and then sells those goods to customers for a profit is called a(n) ____.
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merchandising business
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By January 31, employers must provide each employee with a ____, which summarizes the employee's earnings and taxes withheld.
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Form W-2
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The ____ requires larger businesses to deposit income tax payments by electronic funds transfer.
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Electronic Federal Tax Payment System
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Each year, an employer must prepare and send to the IRS a(n) ____, which summarizes the information contained on the employees' Wage and Tax Statements.
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Form W-3
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The ____ account is used to record the total of the employer's payroll taxes.
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Payroll Tax Expense
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A ledger or book of accounts that is summarized in a controlling account in the general ledger is called a(n) ____.
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subsidiary ledger
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A form that serves as a record of cash received from a charge customer is called a ____.
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receipt
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A(n) ____ contains accounts for all charge customers.
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accounts receivable subsidiary ledger
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When a customer pays for merchandise in full at the time of purchase, the transaction is called a ____.
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cash sale
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____ are the goods a business buys for resale to its customers.
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merchandise
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A(n) ____ is a form that lists the details of a sale: the date of the sale, the name of the customer, and the description, quantity, and price of the goods sold.
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sales slip
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A(n) ____ refers to cash that is received by a business.
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cash receipt
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A(n) ____ is a source document prepared by the seller to notify a charge customer that the customer's account will be decreased by the amount of a return or allowance.
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credit memorandum
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____ set out the time period for a customer to make full payment of an invoice.
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credit terms
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A price reduction offered to a customer who keeps damaged or defective merchandise is a(n) ____.
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sales allowance
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The balance of a(n) ____ must agree with the balance of the accounts in its related subsidiary ledger.
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controlling account
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____ refers to the items of merchandise a business has in stock.
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inventory
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The amount paid for insurance is called the ____.
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premium
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A ledger that contains accounts for all creditors and the amount that is owed to each is the ____.
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accounts payable subsidiary ledger
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A(n) ____ is a document that lists the credit terms and the quantity, description, unit price, and total cost of the items shipped to the buyer.
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invoice
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The period of time within which an invoice must be paid in order to receive an amount off the invoice price is called a(n) ____.
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discount period
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Information placed on an invoice that outlines a set of steps to be followed in processing the invoice for payment is a(n) ____.
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processing stamp
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When the supplier pays the shipping cost to the buyer's destination or location, the term is called ____.
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FOB destination
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The ____ is the actual cost to the business of the merchandise sold to customers.
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cost of merchandise
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A(n) ____ is a written request that a certain item or items be ordered.
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purchase requisition
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The date an invoice must be paid is called the ____.
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due date
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A written offer to a supplier to buy certain items is called a(n) ____.
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purchase order
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A(n) ____ is issued by a bank and is honored by many businesses.
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bankcard
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A business that sells to retailers is called a(n) ____.
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wholesaler
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A ____ is a column total written in small pencil figures.
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footing
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A ____ is used for journalizing a specific kind of business transaction.
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special journal
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The ____ is a special journal used to record only the sale of merchandise on account.
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sales journal
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Shipping terms of ____ means that the buyer pays the shipping charge from the supplier's shipping point.
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FOB shipping point
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The source document prepared by the buyer to notify the seller that the seller's account is to be decreased is called a(n) ____.
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debit memorandum
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A business receives a(n) ____ when it keeps unsatisfactory merchandise, but pays less than the original price.
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purchases allowance
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A(n) ____ contains invoices to be paid, arranged by their due dates.
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tickler file
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An amount charged by a bank for handling a business's bankcard sales slips is a(n) ____.
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bankcard fee
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Merchandise returned by the buyer to the supplier for full credit is a(n) ____.
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purchases return
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A cash discount that suppliers often offer credit customers for early payment is a(n) ____.
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purchase discount
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The account used to record the cost of merchandise purchased during the fiscal period is the ____.
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Purchases account
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The form that lists the items included in a shipment is called a(n) ____.
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packing slip
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A special journal used to record all transactions in which items are bought on account is the ____.
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purchases journal
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A ____ is used to record all transactions in which cash is paid out or decreased.
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cash payments journal
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____ is the process of determining whether the amounts of cash recorded in a business's accounting records and the amounts in its checkbook agree.
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proving cash
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A ____ is a list of all creditors in the accounts payable ledger, the balance in each account, and the total amount owed.
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schedule of accounts payable
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A ____ lists all the accounts in the accounts receivable subsidiary ledger and their balances.
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schedule of accounts receivable
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All transactions involving incoming cash are recorded in the ____.
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cash receipts journal
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