accounting i chapters 1-8 vocabulary review. the amount in an account
TRANSCRIPT
Accounting IChapters 1-8
Vocabulary Review
The amount in an account.
business ethics account balance debit
A record summarizing all the information
pertaining to a single item in the accounting
equation.
expenseaccountreceipt
The name given to an account.
chart of accounts liability account title
Planning, recording, analyzing, and interpreting
financial information.
double-entry accounting memorandum accounting
An equation showing the relationship among assets,
liabilities, and owner’s equity.
accounting equation normal balance chart of accounts
Organized summaries of a business’s financial activities.
transaction accounting records financial statements
A planned process for providing financial information that will be useful to management.
accounting system invoice memorandum
The account used to summarize the owner’s equity in a business.
capital asset T account
Anything of value that is owned.
liability asset owner’s equity
A decrease in owner’s equity resulting from the operation of
a business.
expense withdrawals owner’s equity
The use of ethics in making business decisions.
business ethics normal balance journalizing
Financial rights to the assets of a business.
sales invoicesale on account equities
Financial reports that summarize the financial
condition and operations of a business.
receiptfinancial statements journalizing
An amount owed by a business.
debit liability invoice
The amount remaining after the value of all liabilities is
subtracted from the value of all assets.
special amount column normal balance credit balance
A business that performs an activity for a fee.
credit service business Non-profit organization
A business owned by one person.
proprietorship T account cooperation
An increase in owner’s equity resulting from the operation of
a business.
journalizingrevenue ethics
A sale for which cash will be received at a later date.
sale on account expense proving cash
A business activity that changes assets, liabilities, or owner’s
equity.
withdrawals double-entry accounting transaction
Assets taken out of a business for the owner’s personal use.
financial statements withdrawals deposits
The principles of right and wrong that guide an individual
in making decisions.
financial statements general amount column ethics
The side of the account that is increased.
normal balance credit balancedebit balance
A list of accounts used by a business.
chart of accounts debit sales invoice
An amount recorded on the right side of a T account.
debit deposit credit
An amount recorded on the left side of a T account.
credit debit account balance
An accounting device used to analyze transactions.
special amount column T accountsource document
A business form ordering a bank to pay cash from a bank
account.
deposit slipmemo check
Determining that the amount of cash agrees with the accounting records.
proprietorship proving cash credit
A journal amount column that is not headed with an account
title.
chart of accounts general amount column special amount column
The recording of debit and credit parts of a transaction.
double-entry accounting proving cash accounting
A form for recording transactions in chronological
order.
checkbook source document journal
Recording transactions in a journal.
correctingjournalizingdouble-entry accounting
A form on which a brief message is written describing a
transaction.
memorandum invoicesales invoice
A journal amount column headed with an account title.
T-account normal balance special amount column
A business form giving written acknowledgement for cash
received.
normal balance check receipt
A business paper from which information is obtained for a
journal entry.
transaction source document memo
The number assigned to an account.
chart of accountsaccount numbercheck number
An additional journal entry, used to correct an incorrect journal
entry.
transactiongeneral journal entrycorrecting entry
A ledger that contains all accounts needed to prepare
financial statements.
general ledgergeneral journalwork sheet
Transferring information from a journal entry to a ledger
account.
adjusting an entrypostingproving cash
A report of deposits, withdrawals, and bank
balances sent to a depositor by a bank.
bank statementdeposit slipcheck
An endorsement consisting only of the endorser’s signature.
full endorsementblank endorsementspecial endorsement
A bank card that automatically deducts the amount of a
purchase from the checking account of the cardholder.
debit cardbirthday cardgift card
A check that a bank refuses to pay.
dishonored checkcertified checkpaycheck
An amount of cash kept on hand and used for making
small payments.
checking account balancepetty cashpiggy bank cash
A check with a future date on it.
postdated checkdishonored checkblank check
Changes recorded on a work sheet to update general ledger accounts
at the end of a fiscal period.
adjustmentstransactionsclosing entries
A financial statement that reports assets, liabilities, and owner’s
equity on a specific date.
worksheetbalance sheetincome statement
The length of time for which a business summarizes and reports
financial information.
born on dateaccounting periodfiscal period
A financial statement showing the revenue and expenses for a fiscal
period.
post-closing trial balancegeneral ledgerincome statement
The difference between total revenue and total expenses when
total revenue is greater.
net lossnet incomeneither
The difference between total revenue and total expenses
when total expenses are greater.
net incomenet lossneither
A proof of the equality of debits and credits in a general ledger.
trial balanceworksheetpost-closing trial balance
A columnar accounting form used to summarize the general ledger information needed to prepare
financial statements.
general journalgeneral ledgerworksheet
Any persons or groups who will be affected by an action.
CPA’sstakeholderssteakholders
The series of accounting activities included in recording financial information for a fiscal period.
fiscal periodaccounting cyclepost-closing cycle
Journal entries recorded to update general ledger accounts
at the end of a fiscal period.
closing entriesadjusting entriesjournal entries
Journal entries used to prepare temporary accounts for a new
fiscal period.
closing entriestransactionsjournal entries
Accounts used to accumulate information from one fiscal
period to the next.
permanent accountstemporary accountsneither
Accounts used to accumulate information until it is transferred to the owner’s capital account.
closing entriestemporary accountspermanent accounts
CORRECT!!!!
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