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Details Title: Cycle 1 Description: Sole Proprietorship Total Flash Cards: 71 Created: 10/06/2006 07:14:46	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 Acconting system Definition A planned process for providing financial information that will be useful to management. Term Accounting records Definition Organizedb summaries of a business's financial activities. Term Service business Definition A business thst 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 Financial 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 Equations 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 Term Balance sheet Definition A financial statement that reports assets, liabilities, and owner's equity. Term Journal Definition A form of recording 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 title Definition A journal amount that is not headed with an account title. Term Entry Definition Information for each transaction recorded in a journal. Term Double-entry accounting Definition The recording of debit and credit parts of a transaction. 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 describing the goods or services sold, the quantity, and the price. Term Sales Invoice Definition Invoice used as a source document for recording a sale on account. Term Receipt Definition A business form given written acknowledgement 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 the accounting records. Term T account Definition An accounting device used to analyze transactions. Term Credit Definition An amount recorded on the right side. Term Debit Definition An ammount recorded on the left side. Term Normal Balance Definition The side of the account that is increased. Term Chart of Accounts Definition A list of accounts used by a business. 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 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 a general ledger, assigning account numbersm 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 journal 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 signature or stamp on the back of a check transferring ownership. Term Special endorsement Definition An endorsement indication a new owner of a check Term Blank endorsement Definition An endorsement consisting only of the endorser;s signature. Term Restrictive endorsement Definition an endorsement restricting further transfer of a check's ownership. Term Postdated check Definition A check with a future date on it. Term Bank statement Definition A report of deposits, withdrawals, 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 transfer funds. Term Debit Card Definition A bank card that, when making purchases, automatically debucts 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 proff 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 Partnership Definition A business in which two or more persons combine their assets and skills Term Partner Definition Each member of a partnership. Term Merchandising business Definition A business that purchases and sells goods. Term Retail merchandising business Definition A merchandising business that sells to those who use or consume the goods. Term Merchandise Definition Goods that a merchandising business purchases to sell. Term Wholesale merchandising business Definition A business that buys and resells merchandise to retail merchandising businesses. Term Retail merchandising business Definition A merchandising business that sells to those who use or consume the goods Term Wholesale merchandising business Definition A business that buys and resells merchandise to retail merchandising businesses Term Cost of merchandise Definition The price a business pays for goods it purchases to sell Term Markup Definition The amount added to the cost of merchandise to establish the selling price Term Vendor Definition A business from which merchandise is purchased or supplies or other assets are brought Term Purchase invoice Definition An invoice used as a source document for recording a purchase on account transaction Term Terms of sale Definition An agreement between a buyer and a seller about payment for merchandise