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mort165 test 1
funeral management accounting
121
Management
Not Applicable
09/24/2012

Additional Management Flashcards

 


 

Cards

Term
Account
Definition
a device for recording the changes (increases or decreases) in the fundamental accounting elements
Term
Accountant
Definition
one who is concerned with the design of the system of records, the preperation of reports based upont he recorded data, and the interpretation of the reports
Term
account balance
Definition
the difference between the total debits and total credits in an account
Term
accounting
Definition

a language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data

 

 

ARCSRI

Term
accounting equation
Definition
assets = liabilities + owner's equity
Term
accounts payable
Definition
an unwritten promise to pay creditors for property, such as merchandise, supplies or equipment, purchased on credit, or for services rendered
Term
accounts receivable
Definition
an unwritten promise by a customer to pay, at a later date, for goods sold or services rendered
Term
accrual accounting
Definition
recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not
Term
accrued expense
Definition
an expense incurred in operating a business during an accounting period, but not yet paid
Term
accrued income
Definition
income actually earned during an accounting period but which will not be received until a future period
Term

allowance for doubtful accounts

 

(allowance for bad debts)

Definition
a contra account utilized to accumulate totals against accounts receivable
Term
analyzing
Definition
determining the fundamental significance of business transactions so that financial info may be properly processed
Term
assets
Definition
property of monetary value owned by a business
Term

bad debts expense/

 

uncollectible accounts expense/

 

loss from uncollectible accounts

Definition
accounts receivable that are uncollectible
Term

balance sheet

 

aka...

Definition

statement of financial position / statement of financial condition

 

a formal financial statement illustrating

 

assets, liabilities, and owner's equity of a business as of a specific date

Term

bookkeeper

 

aka...

Definition

information processor

 

 

one who is involved in the process of recording financial info in a prescribed manner

Term
bookkeeping
Definition
the recording of financial information in a prescribed manner
Term
budget
Definition
a formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in financial terms
Term

business paper

 

aka...

Definition

source document

 

 

the first record of a business transaction, such as check stubs, receipts, sales invoices, puchase invoices, cash register tapes, etc.

Term
calendar year
Definition
a twelve month period beginning Jan 1 and concluding December 31
Term

capital

 

aka...

Definition

net worth / owner's equity / proprietorship

 

 

the amount by which the total assets exceed the total liabilities of a business;

an owner's financial interest ina business

 

assets = liability - O.E.

 

Term
cash
Definition
coins, currency (paper money), checks, credit card receipts and money orders received from others, as well as money deposited in bank
Term
cash discounts
Definition
discounts from quoted prices as an inducement for prompt payment of invoices
Term

cash disbursements

 

aka...

Definition

cash payments

 

 

money and money substitutes paid

Term
cash payments journal
Definition
ma book of original entry in which only cash disbursements are recorded
Term
cash receipts journal
Definition
a book of original entry in which only cash receipts are recorded
Term

certified public accountant

 

aka...

Definition

C.P.A.

 

an individual possessing a college edu, having practical exp in accouting and who has passed a comprehensive state exam in order to be certified to practice public accounting in that state

Term
chart of accounts
Definition
a list of all the account titles and the account numbers assigned to them
Term

check stub

 

which is also a form of...

Definition

a type of source document

 

 

a form on which information is recorded by the drawer of a check concerning the check drawn

 

Term
chronological
Definition
to record in order of time
Term
classifying
Definition
the sorting of the many business transactions in an orderly and systematic manner
Term
combination journal
Definition
a book of original entry which combines into one journal the features of the 2 column general journal and a special journal
Term
contra account
Definition
an account designed to accumulate totals to offset a related account
Term
CR.
Definition
the abbreviation for credit
Term
credit
Definition
right side of standard account
Term
credit balance
Definition
a condition that occurs when the total of the credits in an account is larger that the total of the debits in that account
Term
credit memorandum
Definition
a source document that grants credit to a buyer for purchase return or purchase allowance
Term
creditor
Definition
a business or individual to whom a debt is owed
Term
cross referencing
Definition

the process of entering the journal page number in the ledger

and the ledger acct number in the journal

Term
current assets
Definition
cash or other assets that will be converted into cash or consumed within one year
Term

data entry

 

aka...

 

Definition

recording

 

 

the committing of a business transaction and the events surrounding such into writing

Term
debit
Definition
the left side of a standard account
Term
debit balance
Definition
a condition which occurs when the total of the debits in an acct is larger than the total of the credits in that account
Term
debit memorandum
Definition
items in the bank duducts from the account balance
Term
disbursement
Definition
a payment
Term
discount period
Definition
a specific number of days during which a discount is available if the account is paid
Term

double entry accounting

 

aka...

Definition

double entry bookkeeping

 

 

the process of recording equal debits and credits for a single business transaction

Term
DR.
Definition
the abbrev. for debit
Term

drawing account

 

aka...

Definition

owner withdrawls

 

 

a separate owner's equity account in which withdrawals of cash or other assets by the owner for personal use are recorded

Term
fiscal period
Definition
a period of time covered by an income statement
Term

fixed assets

 

aka...

Definition

long term assets

 

 

property of a relatively permanent nature used in the operation of a business and not intended for resale

Term

fixed liabilities

 

aka...

Definition

long term libilities

 

 

liabilities that are not due and payable within one year

Term

footing

 

aka...

Definition

pencil footing

 

 

a total, written in small pencil figures, under the last entry in a column of an account

Term
general journal
Definition
a book of original entry in which business transactions are recorded in chronological order
Term
general ledger
Definition
the book of accounts
Term

gross margin

 

aka...

 

Definition

gross profit

 

 

 gross profit = net sales - cost of goods sold

Term
in balance
Definition

a condition in which the total of the debits and the total of the credit are equal in an account

 

 

debits = credits

Term

income

 

aka...

Definition

revenue

 

 

an inflow of assets as a reult of selling aproduct or providing a service

Term

income statement

 

aka...

Definition

operating statement / profit and loss statement / statement of operation



a formal financial statement which presents the

income, expenses, and resulting net profit or net less for a given period

Term

information processor

 

aka...

Definition

bookkeeper

 

 

one who is involved in the process of recording financial info in a prescribed manner

Term
intangible assets
Definition

those assets that cannot be touhed or grasped

 

e.g. patents, copyrights, goodwill

Term
interest
Definition
money paid for the use of money
Term
interpreting
Definition

explaining the significant events or developments that occur, usually taking the form of the analysis and comparisons

 

 

ARCSRI

Term

inventory

 

aka...

Definition

merchandise

 

 

good purchased for resale at a profit

Term

invoice

 

Definition
a source document showing quantity, description, prices of items, total amount of purhcase and the terms of payment
Term
journal
Definition
any book of original entry
Term
journalizing
Definition
the process of recording business transactions in a journal
Term
ledger
Definition
a book of accounts in which data from transactions recorded in journals are posted and thereby summarized
Term
liabilities
Definition
any debts that a business owes
Term

long term assets

 

aka...

Definition
fixed assets
Term

long term liabilities

 

aka...

Definition
fixed liabilities
Term

loss from uncollectable accounts

 

 

aka...

Definition
bad debts expense / uncollectible accounts expense
Term

merchandise

 

aka...

Definition
inventory
Term
mortgage payable
Definition

a long term liability;

a written promise that pledges real property as security for payment of a debt

Term

net income

 

aka...

Definition

net profit

 

net profit = gross profit - expenses

(when gross profit is larger)

Term
net loss
Definition

net loss = gross profit - expenses

(expenses are larger)

Term
net purchases
Definition

net purchases = purchases - PRA - purchase discounts

 

 

 

PRA (purchases returns and allowances)

Term
net sales
Definition

net sales = sales - SRA - sales discounts

 

 

SRA (sales returns and allowances)

Term

net worth

 

aka...

Definition
capital / proprietorship / owner's equity
Term
notes payable
Definition
a written promise to pay a creditor a certain amt in the future
Term
notes receivable
Definition
a written promise of a customer to pay the business a sum of money at a future date
Term

operating statement

 

aka...

Definition
profit and loss statement / statement of operations / income statement
Term
other expenses
Definition
expensesincurred that are not the direct result of regular trading activities of a business
Term
other income
Definition
income received that is not the direct result of regular trading activities of a business
Term

owner's equity

 

aka...

Definition
net worth / capital / proprietorship
Term

owner withdrawl

 

aka

Definition
drawing account
Term
petty cash fund
Definition
a fund of currency and coin established for the payment of small amounts of money
Term
posting
Definition
the transferral of data from the journal to the ledger
Term
prepaid expenses
Definition
itmes which are considered to be assets when acquired, but which will become expenses when consumed or expired
Term

profit and loss statement

 

aka...

Definition
statement of operations / operating statement / income statement
Term

proprietorship

 

aka...

Definition
owner's equity / net worth / capital
Term
proving the journal
Definition
a process which examines each page of a journal, confirming that the debit entries equal the credit entries on each page
Term
purchase invoice
Definition

a source document prepared by the seller listing the

items shipped,

their cost

and the method of shipment (from buyer's point of view)

Term
purchase order
Definition
a written order by a buyer for the merchandise or other protery specified in the purchase requisition
Term
purchase requisition
Definition
a form used to request the responsible person/dept to purchase merchandise or other property
Term
purchases
Definition
a temporary owner's equity acct used to record the buying of merchandise for resale
Term
purchase discounts
Definition

a temporary owner's equity contra account used to record discounts taken on inventory purchases;

 

the amount of any discounts grants by suppliers to encourage prompt payment of their invoices

Term
purchases journal
Definition
a book fo roiginal entry used to record puchases of merchandise on credit only
Term
purchases returns and allowances
Definition
a temporary owner's equity contra account utilized to record the return of merchandise to the manufacturer or supplier as the result of material, defects in workmanship, and/or inferior product quality
Term
quarterly
Definition
a 3 month period
Term

recording

 

aka...

Definition

data entry

 

committing of a business transaction and the events surrounding such into writing

Term

reporting

 

aka...

Definition

final processing

 

 

the process of communicating the results achieved during the accounting period to others

Term
retail sales tax
Definition
a tax imposed on tangible personal property sold at retail
Term
sales
Definition
a temporary owner's equity acct used to record the earning of revenue
Term
sales discount
Definition
a temporary owner's equity contra account used to record discounts given to customers as an incentive fo prompt payment
Term
sales invoice
Definition
a source document prepared by the seller that lists the items shipping, their cose, and the method of shipment (from the seller's point of view)
Term
sales journal
Definition
a booke of original entry used for the recording of sales merchandis on credit only
Term
sales returns and allowances
Definition
a temporary owner's equity contra account used to record credit given to a customer for shrtages or damged goods
Term
special journal
Definition
a special journal designed to accumulate data about only one kind of business transaction
Term

statement of financial condition

 

aka...

Definition
statement of financial position
Term

statement of operations

 

aka...

Definition

operating statement

profit and loss statement

income statement

Term

statement of owner's equity

 

aka

Definition

statement of net worth

 

a formal financial statement which summarized all of the changes in owner's equity during a speific time period

Term
summarizing
Definition

bringing account data together in a way that will further enhace its usefulness, usually by means or reports and statements

 

 

ARCSRI

Term

tangible assets

 

Definition
those assets that can by appriased by value or seen or touched
Term
transaction
Definition
any activity of a business enterprise that involves the exchange of values
Term
transaction analysis
Definition
the affect of business activities on the accounting elements
Term
trial balance
Definition
prove debit = credit
Term

uncollectible accounts expense

 

aka...loss

Definition
loss from uncollectible accounts / bad debts expense
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