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Cycle 1
Sole Proprietorship
72
Accounting
11th Grade
10/06/2006

Additional Accounting Flashcards

 


 

Cards

Term
Accounting
Definition
Planning, recording, analyzing, and interptreting financial information
Term
Accounting System
Definition
A planned process for providing financial information that will be useful to management
Term
Accounting Records
Definition
Organized summaries of a business's financial activities
Term
Service Business
Definition
A business that performs an activity for a fee
Term
Proprietorship
Definition
A business owned by one person
Term
Asset
Definition
Anything of value that is owned
Term
Equities
Definition
Financial rights to the assets of a business
Term
Liability
Definition
An amount owed by a business
Term
Owner's Equity
Definition
The amount remaining after the value of all liabilities is subtracted from the value of all assets
Term
Accounting Equation
Definition
An equation showing the relationship among assets, liabilities, and owner's equity
Term
Transaction
Definition
A business activity that changes assets, liabilities, or owner's equity
Term
Account
Definition
A record summarizing all the information pertaining to a single item in the accounting equation
Term
Account Title
Definition
The name given to an account
Term
Account Balance
Definition
The amount in an account
Term
Capital
Definition
The account used to summarize the owner's equity in a business
Term
Balance Sheet
Definition
A financial statement that reports assets, liabilities, and owner'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 from the operation of a business
Term
Withdrawals
Definition
Assets taken out of a business for the owner's personal use
Term
T Account
Definition
An accounting device used to analyze transactions
Term
Normal Balance
Definition
The side of the account that is increased
Term
Debit
Definition
An amount recorded on the left side
Term
Credit
Definition
An amount recorded on the right side
Term
Chart of Accounts
Definition
A list of accounts used by a business
Term
Journal
Definition
A form for recording transactions in chronological order
Term
Journalizing
Definition
Recording transactions in a journal
Term
Special Amount 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
Term
Double-Entry Accounting
Definition
The recording of debit and credit parts of a transaction
Term
Source Document
Definition
A business paper from which information is obtained for a journal entry
Term
Invoice
Definition
A form describing the goods or services sold, the quantity, 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 acknowledgement 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
Check
Definition
A business form ordering a bank to pay cash from a bank account
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
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 restricting further transfer of a check's ownership
Term
Postdated Check
Definition
A check with a future date on it
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
Component Percentage
Definition
The percentage relationship between one financial statement item and the total that includes that item
Term
Partnership
Definition
A business in which two or more persons combine their assets 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 resells 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 the 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 on account transaction
Term
Terms of Sale
Definition
An agreement between a buyer and a seller about payment for merchandise
Term
Fiscal Period
Definition
The length of time for which a business summarizes and reports financial information
Term
Work sheet
Definition
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
Term
Trial Balance
Definition
A proof of the equality of debits and credits
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