Home > Flashcards > Accounting > Cycle 1

Details Title: Cycle 1 Description: Sole proprietorship Total Flash Cards: 63 Created: 10/06/2006 07:10:55	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, analyzing, and interpreting financial information Term Accounting system Definition A planned process for proving financial information that will be useful to managemant Term Accounting records Definition Organized summares 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 owmed Term Equities Definition Financial rights to the assets of 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 assts Term Accounting equation Definition An equation showing the relationship among assets, liabilities, and owner's equity Term Transaction 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 that reports assets, liabilities, and owner's equity on a specific data Term Revenue Definition An increase in owner's equity reulting 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 transactions Term Debit Definition An amount recorded on the left side Term Credit Definition An amount recorded on the right side Term Normal balance Definition the side of the account that is increased Term Chart of account Definition A list of account used by a business Term Journal Definition A form for recording transactions in chronological 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 jounal amount column that is not headed with an account Term entry Definition Information for each transaction recorded in a jounal Term General amount column Definition A jounal amount column that is not headed with an account Term Double-entry accounting Definition the recorded of debit and credit parts of a transaction Term Soure document Definition A business paper from which information is obtained for journal entry Term Check Definition A business form ordering a back to pay cash from a bank account Term Invoice Definition A form describing the goods or services sold, the quantity, and the price Term Sales Invoice Definition An invoice used as a soure document for recording a sale on account Term Receipt Definition A business from giving written acknowledgement for cash received Term memorandum Definition A from on which a brief message is written discribing a transaction Term Proving cash Definition Determing that the amount of cash agrees with the 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 nummber Definition The number assigned to an account Term File maintenance Definition The procedue for arrigning accounts in a 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 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 signature or stamp on the back of a check transferring ownership Term bank endorsement Definition an endorsement consisting only of the endorser's signature Term Special endorsement Definition an endorsement indicating a new owner of a check Term restrictive endorsement Definition an endorsement restricting further transfer of a check's ownership Term postdated check Definition A check with a future date Term bank statement Definition A report deposits, withdrawals, and bank balances sent to a depositor by 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 trransfer 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 from showing proof of a petty cash payment Term component percentage Definition the percentage relationship between one financial statement item and the total that includes that item Term Adjusting entries Definition Journal entries recorded to updata general ledger accounts at the end of a fiscal period Term permanemt account Definition accounts used to accumulate information from one fiscal period to the next Term Tempotary accounts Definition Accounts used to accumulate information until it is transferred to the owner's capital account Term Closing entries Definition journal entries used to prepare temporary accounts for a nea fiscal period Term post-closing trial balance Definition a trial balance prepard after the closing entries are posted