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Details Title: Cycle One Description: Sole Proprietorship Total Flash Cards: 75 Created: 10/06/2006 07:19:46	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 Accounting System Definition planned process for providing financial information that will be useful to management. Term Accounting Records Definition organized summaries of a business financial activities. Term Service Business Definition business that performs an activity for a fee Term Proprietorship Definition business owned by one person Term Asset Definition anything that is owned Term Liability Definition amount owed Term Equities Definition financial rights to the assets Term Owner's Equity Definition amount remaining form the value of all liabilities is subtracted from the value of all assets Term Accounting Equation Definition Assets + Liabilities = Onwer's Equity Term Transaction Definition business activity change in the amounts in the accounting equation Term Account Definition record summarizing all the information pertaining to a single item in the accounting equation Term Account Title Definition name given to an account Term Account Balance Definition amount in an account Term Capital Definition account used to summarize the owner's equity in a business Term Balance Sheet Definition financial statement that reports assests, liabilities, and onwer'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 fron the operation of a business Term Withdrawals Definition assets taken out of a business for the owner's personal use. Term T-account Definition used to only analyze transactions Term Debit Definition amount recorded on the left side Term Credit Definition amount recorded on the right side Term Normal Balance Definition the side the account increases on Term Chart of Accounts Definition list of accounts Term Journal Definition a form describing the goods or services sold, the quantity, and the price Term Journalizing Definition recording transactions in a journal Term Special Account Column Definition a journal amount column 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 the 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 quanity, 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 acknowledge 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 accounts 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 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 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 restricing further tranfer of a check's ownership Term Postdated Check Definition a check with a future date 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 deducts 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 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 accouting form used to summarize the general ledgar 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 recorded on a work sheet to update general ledger accounts at the end of the 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 total revenue and total expenses when total revenue is greater Term Net loss Definition the difference between total revenue and total expenses when total expenses is greater Term Partnership Definition a business in which two or more persons combine their assests 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 results 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 cost of merchandise to establish the selling price Term Vendor Definition a business from which merchandise is purchased or supplies or other assets are bought Term Purchase Invoice Definition an invoice used as a source document for recording a purchase an account transaction Term Terms of Sale Definition an agreement between a buyer and a seller about payment for merchandise