Accounting (South Western)
Terms
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- Planning, Recording, analyzing and interpreting financial information.
- accounting
- planned process for providing financial information that will be useful to a management
- accounting system
- organized summaries of a businesses financial activites
- accounting records
- business that perfroms and activity for a fee
- service business
- a business owned by one person
- proprietorship
- anything of value that is owned
- asset
- financial rights to the assets of a business
- equities
- an amount owed by a business
- liability
- the amount remaining after the value of all liabilites is subtracted from the value of all assets
- owners' equity
-
an equation showing the relationship among assets, liabilites and owners equity
assets+liabilites=owners equity - accounting equation
- a business activity that changes assets, liabilites, or owners equity
- transaction
- a record summarzing all information pertaining to a single item in the accounting equation
- account
- the name given to an account
- account title
- the amount in an account
- account balance
- the account used to summarize the owner's equity
- capital
- a financial statement that reports assets, liabilites, and owners equity on a specific date
- balance sheet
- an increase in owners equity resulting from the operation of a business
- revenue
- a sale for which cash will be received at a later date
- sale on account
- a decrease in the owners equity resulting from the the operation of a business
- expense
- assets taken out of a business for the owners personal use
- withdrawls
- an accounting device used to analyize transactions
- T account
- an amount recorded on the right side of a T account
- debit
- an amount recorded on the left side of a T account
- credit
- a list of accounts used by a business
- chart of accounts
- a form for recording transactions in chronogical order
- journal
- recording transactions in a journal
- journalizing
- information for each transaction recorded in a journal
- entry
- a journal with two amount colums in which all kinds of entries can be rocorded
- general journal
- recording of debit and credit parts of a transaction
- double-entry accounting
- a business paper from which information is obtained for a journal entry
- source document
- a form describing the goods or services sold, the quantity, and the preice
- invoice
- an invoice used as a source document for recording a sale on account
- sale invoice
- a business form giving written acknowledgement for cash received
- receipt
- a form for which a breif message is written describing a transaction
- memorandum
- a group of accounts
- ledger
- a ledger that contains all accounts needed to prepare financial statements
- general ledger
- the number assigned to an account
- account number
- the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records
- file maintenance
- writing an account title and number on the heading of an account
- opening an account
- transferring information from a journal to a ledger
- posting
- determining the amount of cash agrees with the balance of the cash account in the accounting records
- proving cash
- a journal entry made to correct an error in the ledger
- correcting entry
- a bank account from which payments can be ordered by a depoister
- checking account
- a signature or stamp on the back of a check transfering ownership
- endorsement
- an endorsement consisting only of the endorsers signature
- blank endorsement
- an endorsement indicating a new owner of a check
- special endorsement
- an endorsement restricing further transfer of a checks ownership
- restrictive endorsement
- a report of deposits, withdrawls, and bank balances send to a depositor by a bank
- bank statement
- a check that a bank refuses to pay
- dishonored check
- a computerized cash payment system that usues electronic impulses to transfer funds
- electronic funds transfer
- a bank card that when making purchases automatically deducts the amount of the purchase from the checking account of the cardholder
- debit card
- a form showing proof of a petty cash payment
- petty cash slip
- an amount of cah kept on hand and used for making small payments
- petty cash
- the length of time for which a business summarizes and reports financial information
- fiscal period
- a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
- work sheets
- a proof of equality of debits and credits in a general ledger
- trial balance
- changes recorded on a worksheet to update general ledger accounts at the end of a fiscal period
- adjustments
- a financial statement showing the revenue and expenses for a fiscal period
- income statement
- the difference between total revenue and total expense when total revenue is greater
- net income
- the difference between total revenue and total expenses when total expenses is greater
- net loss
- the percentage relationship between one financial statement item and the total that includes that item
- component percentage
- journal entries recorded to updare general ledger accounts at the end of a fiscal period
- adjusting entries
- accounts used to accumulate information from one fiscal period to the next
- permanent accounts
- accounts used to accumulate information untill it is transferred to the owners capital account
- temporary accounts
- journal entries used to prepare temporary accounts for a new fiscal period
- closing entries
- a trial balance prepared after the closing entries are posted
- post-closing trial balance
- the series of accounting activites included in recording financial information for a fiscal period
- accounting cycle
- a business in which two or more persons comine their assets and skills
- partnership
- each member of a partnership
- partner
- a business that purchases and sells goods
- merchandising business
- a merchandising business that sells to those who use or consume the goods
- retail merchandising business
- goods that a merchandising business purchases to sell
- merchansdise
- a business that buys and resells merchandise to retail merchandising business
- wholesale merchandising business
- a journal used to record only one kind of transaction
- special journal
- the price a business pays for goods it purchases to sell
- cost of merchandise
- the amount added to the cost of the merchandise to establish the selling price
- markup
- a business from which merchandise is purchased or supplies or other assets are brought
- vendor
- a special journal used to record only purchases of merchandise on account
- purchases journal
- a journal amount column headed with an account title
- special amount colums
- an invoice used as a source document for recording a purchase on account transaction
- purchase invoice
- an agreement between a buyer and a seller about payment for merchandise
- terms of sale
- a special journal used to record only cash payment transactions
- cash payments journal
- a journal ammount column that is not headed with an account title
- general amount column