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Details Title: cycle 1 Description: Accounting 1 Total Flash Cards: 56 Created: 10/06/2006 05:16:55	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Accounting Definition Planning, recording, analyzing, and interpreting financial information. Term Accounting system Definition A planned process for prviding finacial information that will be useful to management. Term Accounting records Definition Organized summaries of a business's financial activities. Term service business Definition A business that performs an activity for a fee. Term Proprietorship Definition A business owned by one person. Term Asset Definition Anything of value that is owned. Term Equities Definition Finacial rights to the assets of a business. Term Liability Definition An amount owed by a business. Term Owner's Equity Definition The amount remaining after the value of all liabilities is subtracted from the value of all assets. Term Accounting Equation Definition An equation showing the relationships among assets, liabilities, and owner's equity. Term Transcation Definition A business activity that changes assets, liabilities, or owner's equity. Term Account Definition A record summarizing all the information pertaining to a single item in the accounting equation. Term Account Title Definition The name given to an account. Term Account Balance Definition The amount in an account. Term Capital Definition the account used to summarize the owner's equity in a business. Term Balance Sheet Definition A financial statement tyhat reports assets, liabilities, and owner's equity on a specific date. Term Revenue Definition An increase in owner's equity resulting from the operation of a business. Term Sale on account Definition A sale for which cash will be received at a later date. Term Expense Definition A decrease in owner's equity resulting from the operation of a business. Term Withdrawals Definition Assets taken out of a business for the owner's personal use. Term T-account Definition an accounting device used to analyze transcations. Term Debit Definition The amount recorded on the left side of a t-account. Term Credit Definition The amount recorded on the right side of a t-account. Term Normal Balance Definition The side of a account that is increased. Term Chart of Accounts Definition A list of accounts used by a business. Term Journal Definition A form for recoring transactions in chronjological order. Term Journalizing Definition Recording transactions in a journal. Term Special Amount Column Definition A journal amount column headed with an account title. Term General Amount Column Definition A journal amount column that is not headed with an account title. Term Entry Definition Information for each transaction recorded in a journal. Term Source Document Definition A business paper from which information is obtained for a journal entry. Term Check Definition A business form ordering a bank to pay cash from a bank account. Term Invoice Definition A form descibing the goods or services sold, the quantity, and the price. Term Sales Invoice Definition An invoice used as a source document for recording a sale on account. Term Receipt Definition A busiess form giving written acknoledgement for cash received. Term Memorandum Definition a form on which a brief message is written describing a transaction. Term Proving Cash Definition Determining that the amount of cash agrees with accounting records. Term Ledger Definition A group of accounts. Term General Ledger Definition A ledger that contains all accounts needed to prepare financial statements. Term Account Number Definition The number assigned to an account. Term File Maintenance Definition The procedure for arranging accounts in general ledger, assigning account numbers, and keeping records current. Term Opening An Account Definition Writing an account title and number on the heading of an account. Term Posting Definition Transferring information from a jounal entry to a ledger account. Term Correcting Entry Definition In such a case, the incorrect journal entry should be corrected with an additional journal entry. Term Checking Account Definition A bank account from which payments can be ordered by a depositor. Term Endorsement Definition A signiture or stamp on the back of a check tranferring ownership. Term Blank Endorsement Definition An endorsement consisting only of the endorser's signiture. Term Special Endorsement Definition An endorsement indicating a new owner of a check Term Restrictive Endorsement Definition An endorsement restricting futher tranfer of a check's ownership. Term Postdated Check Definition A check with a future date on it. Term Bank Statement Definition A report of depostits,withdrawls, and bank balances sent to a depositor by a bank. Term Dishonored Check Definition A check that a bank refuses to pay. Term Electronic Funds transfer Definition A computerized cash payments system that uses electronic impulses to funds. Term Debit Card Definition A bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder. Term Petty Cash Definition An amount of cash kept on hand and used for making small payments. Term Petty Cash Slip Definition A form showing proof of a petty cash payment.