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Definition
- A happening of consequence
- Generally the source or cause of changes in assets, liabilities, and equity.
- Involve interaction between an entity and its environment.
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- An external event involving a transfer or exchange between two or more entities.
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- A systemic arrangement that shows the effect of transactions and other events on a specific element (asset, liability, so on).
- Companies keep a sepparate account for each asset, liability, revenue, and expense, and capital.
- sometimes referred to as a T-account
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Term
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Definition
- Permanent Accounts
- Asset, Liabilities, and Equity Accounts
- All appear on the balancce sheet.
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Definition
- Temporary Accounts
- Revenues, expenses and dividend accounts
- Except for dividends the appear on the income statements
- Companies will close these accounts periodically.
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Definition
- The book (or computer printouts) containing the accounts.
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Definition
- A collection of all the asset, liability, owners' equity, revenue, and expense accounts.
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- contains the details related to a given general ledger account.
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Definition
- The "book of original entry" where the company initially records transactions and selected other events.
- Various amounts are transferred from the journal to the ledger.
- Entering transaction data in the journal is known ass journalizing.
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- The process of transferring the essential facts and figures from the journal to the ledger accounts
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- The list of all open accounts in the ledger and their balances.
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Definition
- Trial balance taken immediately after all adjustments have been posted.
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Term
| POST-CLOSING TRIAL BALANCE |
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Definition
- Trial balance taken immediately after closing entries.
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Term
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Definition
- Entries made at the end of an accounting period to bring all accounts up to date on an accrual basis, so that the company can prepare correct financial statements.
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Definition
- Statements that reflect the collection, tabulation, and final summarization of the accounting data.
- Balance Sheet
- Income Statement
- Statement of cash flows
- Statement of Retained earnings
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Definition
- Types of extternal events
- Exchange between two entities where each receives and sacrifices value
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Definition
- Shows the financiaal condition of tthe enterprise at the end of a period.
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Definition
- Measures the results of operations during the period.
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Definition
- Reports the cash provided and used by operating, investing, and financing activities during the period.
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Term
| STATEMENT OF RETAINED EARNINGS |
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Definition
- Reconciles the balancee of the retained earnings account from thee beginning to the end of the period.
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Definition
- The formal process by which the enterprise reduces all nominal accounts to zero
- Determines and transfers the net income or net losss to an owners' equity account.
- "Closing the books"
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Term
| What is the normal balance of Asset Accounts? |
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Definition
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| What is the normal balance of Expense Accounts? |
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| What is the normal balance of Liability Accounts? |
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| What is the normal balance of Equity Accounts? |
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| What is the normal balance of Revenue Accounts? |
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Definition
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Term
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Definition
| Assets = Liabilities + Stockholders' Equity |
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Term
| Expanded Accounting Equation |
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Definition
| Assets=Liabilities+Common Stock+Retained Earnings-Dividends+Revenues-Expenses |
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