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Details Title: Cycle 1 Description: sole proprietorship Total Flash Cards: 57 Created: 10/12/2006 05:07:06	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 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