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Cycle 1
sole proprietorship
57
Accounting
11th Grade
10/12/2006

Additional Accounting Flashcards

 


 

Cards

Term
accounting
Definition
planning, recording, analyzing and interpreting of financial information.
Term
accounting system
Definition
planned process for providing financial information that will be useful to management.
Term
accounting records
Definition
organized summaries of a business's financial activities
Term
service business
Definition
business that performs a service for a fee
Term
proprietorship
Definition
business owned by one person
Term
asset
Definition
anything you own
Term
equities
Definition
financial rights to the assets of a business.
Term
liability
Definition
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
equation showing the relationship between assets, liabilities, and owner's equity. Stated As:
Assets=Liabilities+Owner's Equity
Term
transaction
Definition
a business activity that changes assets, liabilities, or owner's equity.
Term
account
Definition
record summarizing all the information pretaining to a single item in the account equation
Term
account title
Definition
name given to an account
Term
account balanace
Definition
amount in an account
Term
capital
Definition
owner's equity account
Term
balance sheet
Definition
financial statement that reports assets, liabilities, and owner's equity on a specific date
Term
revenue
Definition
increase in owner's equity resulting from operation of business
Term
sale on account
Definition
a sale for which cash is agreed to be paid at a later time
Term
expense
Definition
decrease in owner's equity resulting from the operation of business
Term
withdrawals
Definition
when the owner takes money out of the business for personal use
Term
T account
Definition
account device used to analyze transactions
Term
normal balance
Definition
the side of the acccount that is increased
Term
debit
Definition
amount recorded on the left side of a T account
Term
credit
Definition
amount recorded on the right side of a T account
Term
chart of accounts
Definition
a list of accounts used by a business
Term
journal
Definition
form of recording transactions in chronological order
Term
journalizing
Definition
recording transactions in a journal
Term
special amount column
Definition
journal amount column headed with an account title
Term
general amount column
Definition
journal amount column that is not headed with an account title
Term
entry
Definition
information for each transaction recorded in a journal
Term
double-entry accounting
Definition
recoding of debit and credit parts of a transaction
Term
source document
Definition
business paper from which information is obtained for a journal entry.
check stub (C1)
invoice (I1)
memorandum (M1)
receipt (R1)
calculator tapes (T1)
Term
invoice
Definition
form describing the goods or services sold, the quantity, and price
Term
sales invoice
Definition
invoice used as a source document for recording sale on account
Term
check
Definition
souce document for cash payments
Term
receipt
Definition
business form giving written acknowledgement for cash received
Term
memorandum
Definition
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
ledger
Definition
a group of accounts
Term
general ledger
Definition
ledger that contains all accounts needed to prepare financial statements
Term
account number
Definition
number assigned to an account
Term
file maintenance
Definition
procedure for arranging accounts in a general ledger assigning account numbers, and keeping records
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
additional journal entry, that is used when an incorrect journal entry should is corrected
Term
checking account
Definition
bank account from which payments can be ordered by a depositor.
Term
endorsement
Definition
signature or stamp on the back of a check transferring ownership
Term
blank 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
check with future date on it
Term
bank statement
Definition
report of deposits,withdrawals, and bank balances sent to a depositor by a bank.
Term
dishonored check
Definition
check that refuses to pay, voided
Term
electronic funds transfer
Definition
computerized cash payments system that uses electronic impulses to transfer funds.
Term
debit card
Definition
bank card that when making purchases automatically deducts the amount of the purchase from the checking ammount 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
form showing proof of a petty cash payment
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