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Definition
| Busssiness that sells a service |
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| Journal record only one tyep of transaction |
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Definition
| The process by which financial information about a business is recorded, classified, summarized, interpreted, and communidcated to owners, managers and other interested parties. |
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| A process designed to accumulate, classify and summarize financial data |
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| the review of financial statements to assess their fairness and adherence to generally accepted accounting principles. |
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Definition
| an independent accountant's review of a firm's financial statements. |
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| Certified public accountant (CPA) |
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Definition
| An independent accountant who provides accounting services to the public for a fee. |
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Definition
| A publicly or privately owned business entity that is separate fromits owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business. |
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| One to whom money is owed. |
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| An explanation of a topic under consideration by the Financial Accounting Standards Board. |
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| A business or organizations who major purpose is to produce a profile for its owners. |
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| A proposed solution to a problems being considered by the financial Accounting Standards Board. |
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| Periodic reports of a firm's financial position or operating results. |
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| Anthing havings its own separate idenity, such as an individual, a town, a university or a business |
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| Generally accepted accounting principles (GAAP) |
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Definition
| Accounting standards developed and applied by professional accountants. |
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Definition
| The studey of accounting principles used by different countries. |
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| Management advisory services |
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Definition
| Services designed to help clients improve their information systems of their business performance |
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Definition
| Accounting work carried on by an accountant employed by a single business in industry |
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| A business entity owned by two or more people who are legally responsible for the debts and taxes of the business. |
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| Members of firms that perform accounting services for other companies. |
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| Separate entity assumption |
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Definition
| The concept of keeping a firms financial records separate from the owners personal financial records. |
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| A nonprofit organization, such as a city, public school, or public hospital. |
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Definition
| A business entity owned by one person who is legally responsible for the debts and taxes of the business. |
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| Statements of Financial Accounting Standards |
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Definition
| Accounting principles established by the Financial Accounting Standards Board. |
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| Certificates that represent ownership of a corporation. |
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| the owners of a corporation; also called shareholders. |
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| A service that involves tax compliance and tax planning. |
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| Amounts a business must pay in the future. |
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| Claims for future collection from customers. |
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| Property owned by a business. |
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| A formal report of a business's financial condition on a certain date, reprots the assets, liabilities, and owner's equity of the business. |
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| A point at which revenue equals expenses. |
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| A financial event that changes the resources of a firm. |
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| Financial investment in a business: equity |
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| An outflow of cash, use of other assets, or incurring of a liability. |
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| The current worth of an asset or the price the asset would bring if sold on the open market. |
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| Fundamental accounting equation |
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Definition
| The relationship between assets and liabilities plus owner's equity. |
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Definition
| A formal report of business operations covering a specific period of time; also called a profit and loss statement or a statement of income and expenses |
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| Debts or obligations of a business. |
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| the result of an excess of revenue over expenses. |
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| the result of an excess of expenses over revenue. |
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Definition
| An arrangement to allow payment at a later date: also called a charge account or ope-account credit. |
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| The financial interest of the owner of a business; also called proprietorship or net worth |
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Definition
| An inflow of money or other assets that results from the sale of goods or services or from the use of money or property; also called income. |
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| Statement of owner's equity |
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Definition
| A formal report of changes that occured in the owner's financial interest during a reporting period. |
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| Funds taken from the business by the owner for personal use. |
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| The difference between the amounts recorded on a business account. |
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| Written records of the assets liabilities, and the woner's equity of a business. |
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Definition
| A list of the accounts used by a business to record its financial transaction. |
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Definition
| A means of identifying each account as an asset, liability or owner's equity. |
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| An entry on the right side of an account. |
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Definition
| An entry on the left side on an account. |
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Definition
| An accounting system that involves recording the effects of each transaction as debits and credits. |
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Definition
| A special type of owner's equity account set up to record the woner's withdrawl of cash from the business. |
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Definition
| A small pencil figure written at the base of an amount column showing the sum of the entries in the column. |
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Definition
| the increase side of an account. |
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Definition
| An account that is kept open from one accounting period to the next. |
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Definition
| An accounting error involving a misplaced decimal point. |
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Definition
| A type of account resembling a T, used to analyze the effects of a business transaction. |
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Definition
| An account whose balance is transferred to another account at the end of an accounting period. |
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Definition
| An accounting error involving mispelled digits in a number. |
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Definition
| A statement to test the accuracy of total debits and credits after transactions have been recorded. |
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Definition
| A series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information. |
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Definition
| A chain of references that make it possible to trace information, locate errors, and prevent fraud. |
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Definition
| A ledger account form that shows the balance of the account after each entry is posted. |
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Definition
| Organized in the order in which the events occur. |
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Definition
| A journal entry with more than one debit or credit. |
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Definition
| A journal entry made to correct an erroneous entry. |
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Definition
| A permanent, classified record of all accounts used in a firm's operation: a record of final entry. |
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Definition
| The record of original entry. |
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Definition
| Recording transactions in a journal. |
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Definition
| The record of final entry |
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Term
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Definition
| Transferring data from a journal to a ledger. |
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| Account form balance sheet |
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Definition
| A balance sheet that lists assets on the left and liabilities and owner's equity on the right. |
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Definition
| Journal entries made to update accounts for items that were not recorded during the accounting period. |
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Term
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Definition
| Journal entries made to update accounts for items, that were not recorded during the accounting period. |
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Term
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Definition
| that portion of an assets original cost that has not yet been depreciated. |
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Definition
| An account with a normal balance that is opposite that of a related account. |
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Term
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Definition
| An asset account with a credit balance, which is contrary to the normal balance of an asset account. |
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Term
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Definition
| allocation of the cost a a long-term asset to operations during its useful life. |
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Term
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Definition
| Expense items acquired, recorded, and paid for in advance of their use. |
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| Report form balance sheet |
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Definition
| A balance sheet that lists the asset account first, followed by liabilities and owner's equity. |
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Term
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Definition
| An estimate of the amount that could b e received by selling or disposing of an asset at the end of its useful life. |
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| Straight-line-depreciation |
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Definition
| Allocation of an asset's cost in the equal amounts to each accounting period of the assets useful life. |
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Term
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Definition
| A form used to gather all data needed at the end of an accounting period to prepare financial statements. |
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Term
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Definition
| Journal entries that transfer the results of operations ( net income or net loss) to owner's equity and reduce the revenue, expense,a dn drawing account balances to zero. |
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Term
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Definition
| A special owner's equity account that is used only in the closing process to summarize the results of operations. |
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Term
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Definition
| To understand and explain the meaning and importance of something ( such as financial statements). |
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Term
| Postclosing trial balance |
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Definition
| A statement that is prepared to prove the equality of total debits and credits after the closing process is completed. |
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| Accounts receivable ledger |
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Definition
| A subsidiary ledger that contains credit customer accounts. |
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Term
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Definition
| Sales made through the use of open-account credit or one of various types of credit cards. |
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Term
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Definition
| An account with a debit balance, which is contrary to the normal balance for a revenue account. |
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Term
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Definition
| An account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger. |
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Definition
| A note verifying that a customer's account is being reduced by the amount of sales return or sales allowance plus any sales tax that may have been involved. |
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Definition
| A customer billing for merchandise bought on credit. |
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Definition
| An extablished retail price. |
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Definition
| A business that sells goods that is has produced. |
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Definition
| A business that sells goods purchased for resale. |
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Definition
| the list price less all trade discounts. |
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Definition
| the difference between the balance in the sales account and the balance in the Sales Returns and Allowances account. |
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Definition
| A system that allows the sale of services of goods with the understanding that payment will be made at a later date. |
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Definition
| A business that sells directly to individual consumers. |
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Definition
| A reduction in the price originally charded to customers for goods or services. |
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Term
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Definition
| A special journal used to record sales of merchandise on credit. |
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Definition
| A firm's acceptance of a return of goods from a customer. |
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| Schedule of accounts receivable |
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Definition
| A listing of all balances of the accounts in the accounts receivable subsidiary ledger. |
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Definition
| A business that sells services. |
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Term
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Definition
| A journal used to record only one type of transaction. |
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Definition
| A ledger dedicated to accounts of a single type and showing details to support a general ledger account. |
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Definition
| A reduction from list price. |
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Definition
| A business that manufactures or distributes goods to retail businesses or lagre consumers such as hotels and hospitals. |
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Term
| Accounts receivable ledger |
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Definition
| A subsidiary ledger that contains credit customer accounts |
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Term
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Definition
| Sales made throught the use of an open-account credit or one of various tyeps of credit cards. |
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Definition
| An account with a debit balance, which is contrary to the normal balance for a revenue account. |
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Definition
| The actual cost to the business of the merchandise sold to customers. |
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Definition
| An account showing transportation charges for items purchased. |
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Definition
| A price reduction from the amount originally billed. |
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Definition
| A bill received for goods purchased. |
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Definition
| An order to the supplier of goods specifying items needed, quantity, price and credit terms. |
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Definition
| A list sent to the purchasing department showing the items to be ordered. |
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Definition
| Return of unsatisfactory goods. |
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Definition
| An account used to record cost of goods bought for resale during a specified period. |
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Definition
| A cash discount offered to the customer for payment within a specified period. |
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Definition
| A special journal used to record the purchase of goods on credit. |
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Definition
| A form showing quantity and condition of goods received. |
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Definition
| A cash discount offered by the supplier for the payment within a specified period. |
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Definition
| A supplier's billing document. |
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| Schedule of accounts payable |
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Definition
| A list of all balances owed to creditors. |
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| Transportation In account |
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Definition
| An account showing transportation charges for items purchased. |
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