Term
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Definition
- a device for recording the changes (increases or decreases) in the
fundamental accounting elements. |
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Term
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Definition
| one who is concerned with the design of the system of records, the preparation of reports based upon the recorded data, and the interpretation of the reports |
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Term
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Definition
the difference between the total debits and the total
credits in an account. |
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Term
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Definition
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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Term
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Definition
| Assets equal Liabilities plus Owner's Equity |
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Term
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Definition
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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Term
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Definition
an unwritten promise by a customer to pay, at a
later date, for goods sold or services rendered. |
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Term
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Definition
recording in each fiscal period applicable
expenses, whether paid or not, and income earned, whether collected or not |
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Term
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Definition
an expense incurred in operating a business during an
accounting period, but not yet paid. |
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Term
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Definition
income actually earned during an accounting period but
which will not be received until a future period |
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Term
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Definition
a trial balance taken after adjusting entries
have been recorded. |
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Term
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Definition
| determining the fundamental significance of business transactions so that financial information may be properly processed |
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Term
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Definition
| - property of monetary value owned by a business |
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Term
BAD DEBTS EXPENSE/UNCOLLECTIBLE ACCOUNTS EXPENSE/LOSS
FROM UNCOLLECTIBLE ACCOUNTS |
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Definition
accounts receivable that are
uncollectible. |
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Term
BALANCE SHEET/STATEMENT OF FINANCIAL POSITION/
STATEMENT OF FINANCIAL CONDITION |
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Definition
- a formal financial statement
illustrating the assets, liabilities, and owner's equity of a business as of a specific date. |
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Term
| BOOKKEEPER/INFORMATION PROCESSOR |
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Definition
one who is involved in the
process of recording financial information in a prescribed manner |
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Term
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Definition
| the recording of financial information in a prescribed manner. |
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Term
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Definition
- a formal written statement, which may be based upon adjusted
historical data, of management's plans for the future expressed in financial terms. |
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Term
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Definition
a twelve month period beginning January 1st and
concluding on December 31st. |
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Term
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Definition
coins, currency (paper money), checks, credit card receipts and money
orders received from others, as well as money deposited in the bank. |
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Term
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Definition
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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Term
| CERTIFIED PUBLIC ACCOUNTANT/C.P.A. |
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Definition
an individual possessing a
college education, having practical experience in accounting and who has passed a comprehensive state examination in order to be certified to practice public accounting in that state. |
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Term
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Definition
| a list of all the account titles and the account numbers assigned to them. |
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Term
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Definition
a form on which information is recorded by the drawer of a
check concerning the check drawn; a source document |
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Term
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Definition
| in accounting, to record in order of time |
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Term
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Definition
| the sorting of the many business transactions in an orderly and systematic manner. |
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Term
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Definition
an accounting entry that involves more than
two accounts. |
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Term
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Definition
an account designed to accumulate totals to offset a
related account. |
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Term
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Definition
| the abbreviation for credit. |
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Term
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Definition
| the right side of a standard account. |
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Term
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Definition
a condition that occurs when the total of the credits in an
account is larger than the total of the debits in that account. |
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Term
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Definition
a source document that grants credit to a buyer for
purchase return or purchase allowance. |
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Term
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Definition
| the process of entering the journal page number in the ledger and the ledger account number in the journal |
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Term
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Definition
cash or other assets that will be converted into cash or
consumed within one year |
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Term
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Definition
| debts of a business that are generally paid within one year. |
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Term
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Definition
| the left side of a standard account |
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Term
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Definition
a condition which occurs when the total of the debits in an
account is larger than the total of the credits in that account |
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Term
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Definition
| the loss in value of a fixed asset due to wear and tear and the passage of time; or, a method of matching the cost of a fixed asset against the revenues that the fixed asset will help produce during its useful life |
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Term
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Definition
that portion of the original cost of a fixed asset
that is assigned as an expense to the reporting period expected to benefit from its use. |
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Term
| DOUBLE ENTRY ACCOUNTING/DOUBLE ENTRY BOOKKEEPING |
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Definition
the
process of recording equal debits and credits for a single business transaction |
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Term
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Definition
| the abbreviation for debit |
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Term
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Definition
| a period of time covered by an income statement |
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Term
| FIXED ASSETS/LONG TERM ASSETS |
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Definition
property of a relatively permanent
nature used in the operation of a business and not intended for resale |
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Term
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Definition
a total, written in small pencil figures, under
the last entry in a column of an account |
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Term
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Definition
a condition in which the total of the debits and the total of the
credits are equal in an account. |
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Term
INCOME STATEMENT/OPERATING STATEMENT/ PROFIT AND LOSS
STATEMENT/ STATEMENT OF OPERATIONS |
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Definition
a formal financial
statement which presents the income, expenses, and resulting net profit or net loss for a given period. |
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Term
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Definition
those assets that cannot be touched or grasped
(examples include patents, copyrights and goodwill). |
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Term
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Definition
| - money paid for the use of money |
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Term
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Definition
| explaining the significant events or developments that occur, usually taking the form of analysis and comparisons |
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Term
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Definition
| goods purchased for resale at a profit |
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Term
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Definition
| a source document showing quantity, description, prices of items, total amount of purchase and the terms of payment |
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Term
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Definition
| any book of original entry |
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Term
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Definition
| the process of recording business transactions in a journal |
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Term
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Definition
a book of accounts in which data from transactions recorded in
journals are posted and thereby summarized |
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Term
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Definition
| any debts that a business owes |
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Term
| LONG TERM LIABILITIES/FIXED LIABILITIES |
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Definition
liabilities that are not due
and payable within one year. |
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Term
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Definition
a long term liability; a written promise that pledges
real property as security for payment of a debt |
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Term
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Definition
| the difference between gross profit and expenses when gross profit is larger |
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Term
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Definition
| the difference between gross profit and expenses when expenses are larger. |
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Term
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Definition
a written promise to pay a creditor a certain amount in the
future. |
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Term
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Definition
a written promise of a customer to pay the business a
sum of money at a future date |
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Term
| OPERATING EXPENSES/OVERHEAD |
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Definition
expenses incurred in the normal
operation of a business. |
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Term
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Definition
| the amount originally paid for a depreciable asset |
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Term
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Definition
| expenses incurred that are not the direct result of regular trading activities of a business |
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Term
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Definition
| - income received that is not the direct result of regular trading activities of a business |
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Term
| OWNER'S EQUITY/NET WORTH/CAPITAL/PROPRIETORSHIP |
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Definition
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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Term
| OWNER WITHDRAWALS/DRAWING ACCOUNT |
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Definition
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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Term
| POST CLOSING TRIAL BALANCE |
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Definition
a work paper prepared after all temporary
owner's equity accounts have been closed and all permanent accounts have been balanced and ruled, proving the equality of the debits and credits. |
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Term
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Definition
| the transferral of data from the journal to the ledger |
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Term
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Definition
| - items which are considered to be assets when acquired, but which will become expenses when consumed or expired |
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Term
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Definition
a process which examines each page of a journal,
confirming that the debit entries equal the credit entries on each page |
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Term
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Definition
a source document prepared by the seller listing the
items shipped, their cost and the method of shipment (from the buyer's viewpoint). |
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Term
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Definition
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Term
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Definition
| the committing of a business transaction and the events surrounding such into writing |
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Term
| REPORTING/FINAL PROCESSING |
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Definition
the process of communicating the results
achieved during an accounting period to others |
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Term
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Definition
an inflow of assets as a result of selling a product or
providing a service. |
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Term
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Definition
| a source document prepared by the seller that lists the items shipped, their cost and the method of shipment (from the seller's viewpoint). |
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Term
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Definition
the estimated value of a fixed asset at the end of its useful
life |
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Term
| SOURCE DOCUMENTS/BUSINESS PAPERS |
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Definition
the first record of a business
transaction, such as check stubs, receipts, sales invoices, purchase invoices, cash register tapes, etc. |
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Term
| STATEMENT OF OWNER'S EQUITY/STATEMENT OF NET WORTH |
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Definition
a
formal financial statement which summarizes all of the changes in owner's equity during a specified period of time. |
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Term
| STRAIGHT LINE DEPRECIATION |
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Definition
a method in which the depreciable cost
basis (original cost basis less salvage value) of an asset is apportioned equally over its estimated useful life expressed in terms of months or years |
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Term
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Definition
a type of asset that will be consumed as it is used. (Examples:
embalming supplies and office supplies) |
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Term
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Definition
those assets that can be appraised by value or seen or
touched. |
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Term
| TEMPORARY OWNER’S EQUITY ACCOUNTS |
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Definition
accounts utilized to
accumulate income, expenses and owner's withdrawals for one accounting period only. |
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Term
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Definition
| any activity of a business enterprise that involves the exchange of values. |
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Term
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Definition
the effect of business activities on the accounting
elements. |
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Term
| UNDEPRECIATED COST/BOOK VALUE |
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Definition
the cost of a fixed asset less its
accumulated depreciation. |
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Term
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Definition
| the estimated determinable life of a fixed asset |
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Term
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Definition
an expanded trial balance utilized for computing, classifying,
and sorting account balances before preparing the formal financial statements. |
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