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