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| Subdivision under the three sections of the accounting equation used to summarize increases and decreases in assets, liabilities, and owner's equity. |
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| A person who handles a broad range of jobs related to the making of choices and decisions about the design of a business's accounting system and the preparation and explanation of financial reports. |
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| Entry-level job that can vary with the size of the company from specialization in one part of the system to a wide range of recordkeeping tasks. |
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| The accounting period of a business is separated into activities that help the business keep its accounting records in an orderly fashion. |
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| The basis for keeping all accounting records in balance. Assets = liabilities + owner's equity |
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| period of time covered by an accounting report. |
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| The amount of money owed, or payable, to the creditors of a business. |
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| The basis for keeping all accounting records in balance. Assets = liabilities + owner's equity |
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| The total amount of money owed to a business. |
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| A report of the balances in all asset, liability, and owner's equity accounts at the end of the period. |
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| Property or items of value owned by a business. |
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| A business event, such as the buying, selling, or exchange of goods, that causes a change in the assets, liabilities, or owner's equity of a business. |
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| Money supplied by investors, banks, or owners of a business. Refers to the dollar value of assets contributed to the business. |
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Term
| certified public accountant |
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Definition
| A public accountant who has passed the licensing exam on accounting theory, practice, auditing, and business law. (CPA) |
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Definition
| A list of all the accounts and their assigned account numbers, used in journalizing transactions |
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| A written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check. |
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| A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written. |
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Term
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Definition
| Journal entries made to close, or reduce to zero, the balances in the temporary capital accounts and to transfer the net income or net loss for the period to the capital account. |
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| fixes a journal entry after posting |
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Term
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Definition
| A Journal entry with two or more debits or two or more credits |
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Definition
| An entry to the right side of a T account. |
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| amount entered on the left side of the T account. |
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Definition
| A financial recordkeeping system in which each transaction affects at least two accounts; for each debit there must be an equal credit. |
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Definition
| total financial claims to the assets, or property, of a business. |
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| The cost of the goods or services that are used to operate a business; expenses decrease owner's equity. |
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Term
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Definition
| Legal rights to an item. financial reports Summarized information about the financial status of a business. |
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| Prepared to summarize the changes resulting from business transactions that occur during an accounting period. |
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| An all-purpose journal in which all the transactions of a business may be recorded. |
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| The group of accounts used by a business |
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| The assumption that a business entity will continue to operate for an indefinite time. |
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Definition
| A report of the net income or net loss for a fiscal period; sometimes called a "profit and loss" statement. |
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Definition
| The account in the general ledger used to summarize the revenue and expenses for the fiscal period. |
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Definition
| Lists specific information about a business transactioninvolving the fuying or selling of an item on account |
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Definition
| chronological record of all of the transactions of a business. |
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Definition
| The process of recording business transactions in a journal. |
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Definition
| A book or file containing a separate page for each business account; serves as a permanent record of financial transactions |
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Definition
| The accounting stationery used to record financial information about specific accounts. |
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| Amounts owed to creditors; the claims of creditors to the assets of the business |
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Definition
| The result of a company's spending more than it receives in revenue |
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Definition
| A system in which accounting information is recorded and processed by hand. |
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Definition
| Principle stating that expenses are compared to revenues for the same period. |
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| The amount of revenue that remains after expenses for the period are subtracted |
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| The amount by which total expenses exceed total revenue. |
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Definition
| The increase side of an account: assets, debit side; liabilities and capital, credit side. The word normal used here means usual. |
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Definition
| When a business or individual buys an item on credit. |
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Definition
| Owner's claims to the assets of the business. |
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Term
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Definition
| accounts Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period (for example, assets, liabilities, and owner's capital accounts). |
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Term
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Definition
| The process of transferring information from the general journal to individual general ledger accounts, the fourth step in the accounting cycle. |
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Definition
| Items of value that are owned or controlled by a business; economic resources of a business. |
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Definition
| Creditors' and owners' financial claims to the assets of a business. |
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Definition
| Accounting services that range from tax preparation to merger and acquisition consultation; a variety of accounting services offered to businesses. |
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Definition
| A measure of the relationship between short-term assets and current liabilities. |
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Term
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Definition
| Involves the comparison of two amounts on a financial statement and the evaluation of the relationship between these amounts. |
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Definition
| A form that serves as a record of cash received |
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Definition
| Income earned from the sale of goods or services |
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Definition
| A single line drawn under a column of figures to signify that the entries above the rule are to be added or subtracted; a double rule under an amount signifies a total. |
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Definition
| The sale of merchandise that will be paid for at a later date. |
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Definition
| A revenue account to record the amount of the merchandise sold. |
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Definition
| A paper prepared as evidence that a transaction occurred. |
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Term
| statement of changes in owner's equity |
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Definition
| A financial statement prepared to summarize the effects of business transactions on the capital account. |
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Term
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Definition
| An account shaped like a "T" that is used for analyzing transactions. |
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Term
| temporary capital accounts |
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Definition
| Accounts used to record information during the fiscal period that will be transferred to a permanent capital account at the end of the period. |
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Definition
| A proof of the equality of total debits and credits, the fifth step in the accounting cycle. |
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Definition
| The removal of cash or another asset from the business by the owner for personal use. |
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Definition
| A working paper used to collect information from ledger accounts for use in completing end-of-fiscal-period work |
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