Term
| A temporary owner's equity account used to record the earning of revenue. |
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Definition
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Term
| The process of ledger recording of information. |
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Definition
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Term
| The proprietorship of a business may be decreased by... |
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Definition
| Expenses and withdrawals of assets from the business by the owner |
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Term
| The time an owner allows for the payment of a sale. |
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Definition
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Term
| Where would the total of sales of funeral services be shown? |
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Definition
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Term
| Is land considered a current asset? |
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Definition
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Term
| Is a partnership considered a legal entity for most purposes? |
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Definition
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Term
| A book for entry of a particular type of transaction. |
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Definition
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Term
| A book for recording the buying of goods on credit. |
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Definition
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Term
| A check that has been issued but has not yet been paid is considered to be what? |
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Definition
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Term
| Is an incoming partner liable for partnership debts contracted before their entry into the business? |
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Definition
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Term
| A customer's written promise to pay a sum of money to the business at a future date. |
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Definition
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Term
| This group of accounts are credited to increase. |
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Definition
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Term
| This group of accounts is debited to increase. |
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Definition
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Term
| How do you establish petty cash? |
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Definition
| DR petty cash and CR cash |
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Term
| When a bank has been ordered to make payment on a check or draft, the bank is considered to be the... |
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Definition
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Term
| When a check or draft is made, the person who signs it is considered to be the... |
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Definition
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Term
| When a fixed asset is no longer of any value, what is the amount it will sell for called? |
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Definition
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Term
| Are disbursements from petty cash funds recorded in the accounts as they are made? |
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Definition
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Term
| Generally, are you limited to only issue as many shares of total stock as you can sell or exchange in a one year period? |
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Definition
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Term
| If the credit balance exceeds the debit balance in the income statement columns, what is the difference called? |
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Definition
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Term
| What are increases in all liability accounts recorded as? |
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Definition
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Term
| What should be considered for business location? |
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Definition
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Term
| A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data. |
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Definition
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Term
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Definition
| Assets equal Liabilities plus Owner’s Equity |
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Term
| An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit. |
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Definition
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Term
| An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered. |
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Definition
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Term
| Recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not. |
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Definition
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Term
| An expense incurred in operating a business during an accounting period, but not yet paid. |
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Definition
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Term
| Income actually earned during an accounting period but which will not be received until a future period. |
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Definition
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Term
| Measures the average time required to collect receivables. |
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Definition
| Age of accounts receivable |
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Term
| Federal legislation that requires employer to treat applicants and employees equally regardless of age. |
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Definition
| Age Discrimination in Employment Act |
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Term
| Measures the average time required to sell inventory. |
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Definition
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Term
| The paying off of a debt in regular installments over a period of time. |
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Definition
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Term
| Private investors who are willing to supply financing for new and/or risky small venture start-ups. |
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Definition
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Term
| Accounts receivable that are uncollectible. |
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Definition
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Term
| A formal financial statement illustrating the assets, liabilities, and owner’s equity of a business as of a specific date. |
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Definition
| Balance sheet (statement of financial position; statement financial condition) |
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Term
| The cost of a fixed asset less its accumulated depreciation. |
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Definition
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Term
| An organization that combines inputs of raw materials, capital, labor, and management skills to produce useful outputs of goods and services so as to earn a profit. |
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Definition
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Term
| An ordinary corporation, taxed by the federal government as a separate legal entity. |
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Definition
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Term
| An accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid. |
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Definition
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Term
| The amount of cash a company generates and uses during a period. |
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Definition
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Term
| A financial report showing a firm’s sources of cash as well as its uses of cash. |
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Definition
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Term
| An association of business people who attempt to protect and promote the commercial interest in a community. |
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Definition
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Term
| Balance of costly goods paid for in small monthly (fractional) payments over a period of time. |
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Definition
| Closed end credit (installment credit) |
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Term
| A type of credit granted by retailers that is used by individuals or families for satisfaction of their own wants. |
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Definition
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Term
| An artificial being, invisible, intangible, and existing only in contemplation of law; an entity that has a distinct existence separate and apart from the existence of its individual members. |
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Definition
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Term
| The cost of producing or acquiring goods or services to be sold by firm. |
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Definition
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Term
| The right side of a standard account. |
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Definition
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Term
| Cash of other assets that will be converted into cash or consumed within one year. |
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Definition
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Term
| Debts of a business that are generally paid within one year. |
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Definition
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Term
| Current assets divided by current liabilities. |
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Definition
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Term
| Any borrowed or loaned capital invested in the business that must be repaid to creditors. |
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Definition
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Term
| The left side of a standard account. |
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Definition
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Term
| A separate owner’s equity account in which withdrawals of cash or other assets by the owner for personal use are recorded. |
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Definition
| Drawing account (owner withdrawals) |
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Term
| A business valuation approach which centers on estimating the projected future income of the business typically over a 5-10 year period. |
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Definition
| Earnings valuation approach |
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Term
| The quantity to be purchased which minimizes total costs. |
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Definition
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Term
| One who organizes, manages, and assumes the risk of a business firm or venture. |
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Definition
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Term
| Federal legislation which outlaws discrimination in pay against those who are over forty years old. |
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Definition
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Term
| A decrease in assets, other than withdrawals by the owner, which result from efforts to produce revenues. |
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Definition
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Term
| A method to obtain cash for business operations before payments are received from customers by selling off accounts receivable to a third party. |
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Definition
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Term
| Long-term capital that is invested in the small business; also, funds invested in such long-term assets as: land, building, machinery, furniture, fixtures, other equipment, not to be converted to cash within one year. |
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Definition
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Term
| A cost that, for a given period of time and range of activity, called the relevant range, does not change in total, but becomes progressively smaller on a per unit basis as volume increases; these expenses do not increase with increased business, nor do they decrease with declining business activity. |
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Definition
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Term
| A book of original entry in which any business transactions is recorded in chronological order. |
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Definition
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Term
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Definition
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Term
| An intangible asset such as the name of a funeral home; also, an intangible asset which enables a business to earn a profit in excess of the normal rate of profit earned by other businesses of the same kind. |
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Definition
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Term
| Income before any deductions have been made. |
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Definition
| Gross pay (gross earnings) |
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Term
| Net sales minus the cost of goods sold. |
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Definition
| Gross profit (gross margin) |
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Term
| A formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period. |
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Definition
| Income statement (profit and loss statement; statement of operations; operating statement) |
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Term
| A tax levied on the earnings of individuals and businesses by federal, state, and local governments. |
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Definition
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Term
| A person who agrees to perform a service for a fee and is not subject to the control of those for whom the service is performed. |
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Definition
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Term
| The equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. |
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Definition
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Term
| The number of times the average inventory has been sold or used up during a period. |
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Definition
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Term
| A source document showing quantity, description, prices of items, total amount of purchase and the terms of payment. |
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Definition
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Term
| A form of business ownership which combines aspects of partnerships with the limited liability of a corporation; owners known as members. |
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Definition
| Limited liability company |
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Term
| Liabilities that are not due and payable within one year. |
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Definition
| Long-term liabilities (fixed liabilities) |
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Term
| A group of potential customers possessing purchasing power and unsatisfied needs. |
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Definition
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Term
| The process of planning and executing the development, pricing, promotion, and distribution of an organization’s goods/services. |
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Definition
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Term
| A study that is used by a business to determine where the potential customers are located. |
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Definition
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Term
| An approach used in business valuation which determines value based upon previous sales of similar businesses. |
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Definition
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Term
| Sales minus sales returns and allowances minus sales discounts. |
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Definition
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Term
| A comparison of profit and expense items in the income statement expressed as a percentage of sales income; can be compared to the industry standards in regard to measuring the possible growth of the business. |
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Definition
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Term
| The amount by which the total assets exceed the total liabilities of a business; an owner’s financial interest in a business. |
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Definition
| Owner’s equity (capital; net worth) |
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Term
| Insurance that protects a firm against claims that its product caused bodily injury or property damage to the user. |
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Definition
| Product liability insurance |
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Term
| Quantitative evaluation of information contained in a company’s financial statements (i.e. balance sheet, income statement and cash flow statement, etc) to determine the overall financial strength of a business. |
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Definition
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Term
| An insurance concept in which the fair market price to purchase similar products in similar condition is used to settle claims. |
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Definition
| Replacement value approach |
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Term
| A type of corporation that offers limited liability to its owners but is taxed by the federal government as a partnership. |
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Definition
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Term
| A form of risk management whereby a part of the firm’s earnings is earmarked as a contingency fund for possible future losses, specifically for individual loss categories, such as property, medical, or worker’s compensation. |
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Definition
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Term
| A document designed to communicate the organization’s goals for the future. |
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Definition
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Term
| The effect of business activities on the accounting elements. |
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Definition
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Term
| Estimate of the worth or price of a company. |
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Definition
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Term
| A cost which is uniform per unit, but fluctuates in direct proportion to change in the related total activity or volume. |
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Definition
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Term
| Anyone that invests in, or financially sponsors, a new business. |
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Definition
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Term
| The difference between current assets and current liabilities. |
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Definition
| Working capital (circulating capital) |
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Term
| What is a disadvantage of the Limited Liability Company form of business? |
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Definition
| If improperly structured, it can be taxed as a C Corporation |
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Term
| A loan from your bank which is secured by property. |
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Definition
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Term
| A mortgage payable for this month is what type of liability? |
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Definition
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Term
| Is partnership property protected against the creditors of one partner? |
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Definition
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Term
| A person making a check or draft ordering payment to be made. |
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Definition
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Term
| A total usually written in small pencil figures under the last entry of a column. |
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Definition
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Term
| When a funeral coach is purchased on credit, what would be the bookkeeping entry? |
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Definition
DR funeral coach
CR accounts payable |
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Term
| When a funeral director purchases rolling stock on credit, what would be the bookkeeping entry? |
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Definition
DR casket coach
CR accounts payable |
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Term
| When a proprietorship account is DR, has the account been increased or decreased? |
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Definition
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Term
| What is the listing called when all of the accounts are listed showing their arrangement in the ledger? |
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Definition
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Term
| When an income account is credited, has the account been increased or decreased? |
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Definition
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Term
| When business transactions result in increasing revenue. |
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Definition
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Term
| Do revenues usually increase both assets and owner equity? |
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Definition
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Term
| Is the ending inventory of merchandise of one fiscal period always the beginning inventory of the next period? |
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Definition
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Term
| May be used to estimate the cost of inventory without the taking of a physical inventory. |
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Definition
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Term
| What type of account is accounts payable? |
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Definition
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Term
| The mechanics of this method of bookkeeping requires that for each transaction, total debits must be equal in amount to total credits. |
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Definition
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Term
| What type of account is accounts receivable? |
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Definition
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Term
| The net worth of a firm is equal to its owner's... |
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Definition
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Term
| Any excess of current assets over current liabilities. |
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Definition
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Term
| Any income received but not yet having services rendered. |
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Definition
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Term
| Anyone who is to receive payment on a promissory note, check, draft, or money order. |
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Definition
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Term
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Definition
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Term
| Are the total assets of a firm restricted to the amount that owners are able to provide with their own resources? |
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Definition
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Term
| To decrease an asset balance, do you debit or credit the account? |
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Definition
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Term
| A method of pricing by which each unit of service and merchandise is priced separately. |
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Definition
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Term
| A pricing method where there is an inverse relationship between the markup and the wholesale cost of the merchandise. |
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Definition
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Term
| A method of price quotation in which one price includes both service and casket. |
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Definition
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Term
| A method of price quotation showing separately the price of the service to be rendered and the price of the casket. |
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Definition
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Term
| The process of making the public aware of the products and services offered by a business. |
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Definition
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Term
| The difference between total revenue and total expenses when total expenses are greater. |
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Definition
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Term
| When you debit an asset account, what happens to the balance? |
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Definition
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Term
| When you credit an asset account, what happens to the balance? |
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Definition
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Term
| When you debit a liability account, what happens to the balance? |
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Definition
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Term
| When you credit a liability account, what happens to the balance? |
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Definition
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Term
| When you debit a stockholder's equity account (Common Stock, Retained Earnings), what happens to the balance? |
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Definition
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Term
| When you credit a stockholder's equity account (Common Stock, Retained Earnings), what happens to the balance? |
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Definition
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Term
| When you debit a revenue account, what happens to the balance? |
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Definition
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Term
| When you credit a revenue account, what happens to the balance? |
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Definition
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Term
| When you debit an expense account, what happens to the balance? |
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Definition
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Term
| When you credit an expense account, what happens to the balance? |
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Definition
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Term
| When you debit a dividends account, what happens to the balance? |
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Definition
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Term
| When you credit a dividends account, what happens to the balance? |
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Definition
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