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Details Title: Cycle 1 Description: Cycle 1 Total Flash Cards: 45 Created: 10/12/2006 08:29:18	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, analying, and interpreting financial information. Term Accounting System Definition A 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 A business that performs an activity for fee. Term Proprietorship Definition A business owned by one person. Term Asset Definition Anything of vlue 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 assets. Term Accounting Equation Definition An equation showing the relationship among assets, liabilities, and owner's equity. Term Transaction Definition A business activity that change 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 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 transactions. Term Debit Definition An amount recorded on the left side. Term Credit Definition An amount recorded on the right side. Term Charts of accounts Definition A list of accounts 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 that is not 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 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 Invoice Definition A form describing 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 busuness from giving 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 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 account numbers, and keeping records current. Term Opening an account Definition Writing an account title and nmber on the heading of an account. Term Posting Definition Tranferring information from a journal entry to ledger account. Term Correcting entry Definition A journal entry made to correct an error in the ledger. Term Normal balance Definition The side of the account that is increased. Term Check Definition A business form ordering a bank to pay cash from a bank account.