1. accounts payable
    debts incurred and not yet paid

    the amount of money owed by a business and not yet paid
  2. accounts receivable
    amounts owed to the physician or business that are not yet paid
  3. accounts receivable trail balance
    a method of determining that the journal and the ledger are in balance
  4. accrual basis of accounting
    method of accounting in which income is recorded when earned and expenses are recorded when incurred
  5. assets
    the entire property of a person , association , corporation or estate applicable or subject to the payment of debts
  6. balance sheet
    a financial statement for a specific date that shows the total assets , liabilities , and capital of the business
  7. bookkeeping
    the recording of business and accounting transactions
  8. cash basis of accounting
    a method of accounting in which income is recorded when received and expenses are recorded when paid
  9. cash flow statement
    a financial summary for a specific period that shows the beginning balance on hand , the receipts and disbursements during the period , and the balance on hand at the end of the period
  10. controls
    a standard of comparison to make sure answers obtained are accurate
  11. disbursements journal
    a summary of accounts paid out
  12. entry
    a record or notation of  an occurrence , transaction , or proceeding
  13. equities
    the monetary value of a property or of an interest in a property in excess of claims or liens against it
  14. in balance
    the state in which the total ending balances of patient ledgers equals the total of accounts receivable
  15. invoice
    a paper describing a purchase and the amount due
  16. liabilities
    things that are owed , debts
  17. petty cash fund
    a fund maintained to pay small unpredictable cash expenditures
  18. statement
    a request for payment
  19. statement of income and expense
    a summary of all income and expenses for a given period
  20. subsidiary
    supporting other documents or records
  21. trial balance
    a method of checking the accuracy of accounts
  22. list four items all financial records should show at any given time
    • how much was earned in a given period
    • how much was collected
    • how much is owed
    • the distribution of expenses incurred
  23. the single-entry accounting system uses three basic records
    general journal:  day sheet

    cash payment journal: simplest form a check

    accounts receivable ledger
  24. single entry system
    requires a entry on each side of the accounting equation and each side must always balance
  25. what is the importance of trial balance
    reflect discrepancies between the journal and the ledger. it does not reveal errors in the individual accounts but shows errors in the overall balances of accounts
  26. five common reports are used for accounting in the small business office
    • statement of income and expense
    • cash flow statement
    • trial balance
    • accounts receivable trail balance 
    • balance sheets
  27. IRS requires that several employment records be kept for at least 4 years
    • employee's social security number
    • the number of withholding allowance claimed
    • the amount of gross salary
    • all deductions for social security and medicare taxes
    • subdivision withholding taxes
    • state disability
    • state disability insurance
    • state unemployment tax
  28. what is accounting
     a system of recording , classifying , and summarizing financial transactions.
  29. daily journal
    record of all transactions
  30. accounting systems
    • single-entry
    • double-entry
    • pegboard or write-it-once( most common used)
  31. equity of the owner
    also called capital , proprietorship , owner's equity
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