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Details Title: Cycle 1 Description: Accounting I Total Flash Cards: 76 Created: 12/05/2006 17:56:46	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 Service Business Definition a business that performs an activity for an 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 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 ASSETS = LIABILITIES + 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 that is given to an account Term Account Balance Definition the amount that is in the account Term Capital Definition the account that is 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 the owner's equity resulting from the operation of a business Term Sale on Account Definition a slae for which the cash will be received at a later date, or a charge sale Term Expense Definition a decrease in the owner's equity resulting from the operation of a business Term Withdrawals Definition assets taken out of the a business for the owner's personal use Term T-Account Definition an accounting device that is used to analyze transactions Term Normal Balance Definition the side of the account that is increases on Term Credit Definition an amount recorded on the right side Term Debit Definition the amount recorded on the left side of the account Term Chart 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 headed with an account title Term General Amount Column Definition a journal amount that is not headed with an account title Term Entry Definition information from each transaction that is 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 an invoice used as a source document for recording a sale on account Term Receipt Definition a business form 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 os 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 File Maintenance Definition the procedure for arranging accoutns 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 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 signatiure or stamp on the back of a check transferring ownership Term Blank Endorsement Definition an endorsement consisting only of the endorser's signature Term Restrictive Endorsement Definition an endorsement that restricts further transfer of a check's ownership Term Special Endorsement Definition an endorsement indicating a new owner of a check 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 Cards 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 that is kept on hand and is used for making small payments Term Petty Cash Slip Definition a form showing the proof of a petty cash payment Term Fiscal Period Definition the length of time for which a business summarizes and reports financial information Term Work Sheet Definition a columnar accounting form that is used to summarize the general ledger information needed to prepare financial statements Term Trial Balance Definition a proof of the equality of debits and credits in a general ledger Term Adjustments Definition changes that are recorded on the work sheet to update general ledger accounts at the end of a fiscal period Term Income Statement Definition a financial statement showing the revenue and expenses for a fiscal period Term Net Income Definition the difference between the total revenue and the total expenses when the total revenue is greater than the total expenses Term Net Loss Definition the difference between the total revenue and the total expenses when the total expenses is greater than the total revenue Term Component Percentage Definition the % relationship between one financial statement item and the total that includes that item Term Adjusting Entries Definition journal entries that are recorded to update the general ledger accounts at the end of a fiscal period Term Permanent Accounts Definition accounts used to accumulate information from one fiscal period to the next ---(Asset, Owner's Equity, and -----------------Liability Accounts)----------- Term Temporary Accounts Definition accounts used to accumulate information until is is transferred to the owner's capital account -----(Revenue, Expense, and Owner's -------Drawing Accounts, + Income Summary) Term Closing Entries Definition journal entries that are used to prepare temporary accounts for a new fiscal period Term Post-Closing Trial Balance Definition a trial balance that is prepared after the closing entries are posted Term Accounting Cycle Definition the series of accounting activities included in recording financial information for a fiscal period 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 Merchandise Definition goods that a merchandising business purchases to sell Term Merchandising Business Definition a business that purchases and sells goods Term Retail Merchandise Business Definition a merchandising business that sells to those who use or consume the goods Term Wholesale Merchandising Business Definition a business that buys adn resells merchandise to retail merchandising businesses Term Vendor Definition a business that merchandise is purchased or supplies or other assets are bought Term Markup Definition an increase in the price Term Cost of Merchandise Definition the price a business pays for goodo is purchases to sell Term Purchase Invoice Definition an invoice that is used as a source document for recording a purchase on account transaction