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!!!!

SORRY!!WRONG!