1. Anything of value that is owned
  2. Amount owed by a business
  3. financial rights to the assets of a business
  4. the amount remaining after the value of all liabilities is subtracted from the value of all assets
    owners equity
  5. equation showing the relationship among assets, liabilities, and owners equity
    accounting equation
  6. information about business transactions is obtained from original business papers called
    source documents
  7. the recording of debit and credit parts of a transaction
    double entry accounting
  8. form for recording transactions in chronological order
  9. journal used to record only one kind of transaction
    special journal
  10. record summarizing all the information pertaining to a single item in the accounting equation
  11. group of accounts is called
  12. leger that contains all accounts needed to prepare financial statements is called
    general ledger
  13. ledger that is summarized in a single general ledger account is called
    subsidiary ledger
  14. account in a general ledger that summarizes all accounts in a subsidiary ledger is called
    controlling account
  15. the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current is called
    file maintenance
  16. accounting system showing accounting information for two or more departments is called
    departmental margin
  17. business that purchases and sells goods is called
    merchandising business
  18. transferring transaction information from a journal entry to a ledger account is called
  19. form prepared by the customer showing the price deduction for purchase returns and allowances is called
    debit memorandum
  20. account that reduces a related account on a financial statement is called
    contra account
  21. deduction that a vendor allows on the invoice amount to encourage prompt payment is called
    cash discount
  22. cash discount on purchases taken by a customer is called
    purchases discount
  23. amount of cash kept on hand and used for making small payments is called
    petty cash
  24. source document prepared by the vendor showing the amount deducted for returns and allowances is called
    credit memorandum
  25. cash discount on sales
    sales discount
  26. computer used to collect, store, and report all the information of a sales transaction
    point-of-sale terminal (POS)
  27. report that summarizes the cash and credit card sales of the point-of-sale terminal
    terminal summary
  28. money paid for employee services
  29. period covered by a salary payment
    pay period
  30. total amount earned by all employees for a pay period
  31. taxes based on the payroll of a business
    payroll taxes
  32. deduction from total earnings for each person legally supported by a taxpayer
    withholding allowance
  33. maximum amount of earnings on which a tax is calculated
    tax base
  34. business form used to record payroll information
    payroll register
  35. business form used to record details affecting payments made to an employee
    employee earnings record
  36. depositing payroll checks directly to an employees checking or savings account in a specific bank
    automatic check deposit
  37. computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
    electronic funds transfer (EFT)
  38. amount of revenue from sales less the cost of goods sold
    gross profit
  39. statement showing gross profit for each department is called
    departmental statement of gross profit
  40. merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand is called
    periodic inventory
  41. merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand
    perpetual inventory
  42. estimating inventory by using the previous years percentage of gross profit on operations
    gross profit method of estimating an inventory
  43. percentage relationship between one financial statement item and the total that includes that the item is called
    component percentage
  44. list of customer accounts, account balances, and total amount due from all customers
    schedule of accounts receivable
  45. list of vendor accounts, account balances, and total amount due all vendors is called
    schedule of accounts payable
  46. columnar accounting form used to summarize general ledger information needed to prepare financial statements is called
    work sheet
  47. proof of the equality of debits and credits in a general ledger is called
    trial balance
  48. assets that will be used for a number of years in the operation of a business are called
    plant assets
  49. portion of plant assets cost that is transferred to an expense account in each fiscal period during a plant assets useful life is called
    depreciation expense
  50. financial statements reporting revenue, cost, and direct expenses under a specific departments control are called
    responsibility statements
  51. financial statement showing the revenue and expenses for a fiscal period is called
    income statement
  52. financial statement that shows changes in a corporations ownership for a fiscal period is called
    statement of stockholders equity
  53. total shares of ownership in a corporation
    capital stock
  54. amount earned by a corporation and not yet distributed to stockholders
    retained earnings
  55. earnings distributed to stockholders are
  56. financial statement that reports assets, liabilities, and owners equity on a specific date is called
    balance sheet
  57. journal entries recorded to update general ledger accounts at the end of a fiscal period
    adjusting entries
  58. journal entries used to prepare temporary accounts for a new fiscal period
    closing entries
  59. trial balance prepared after the closing entries are posted is called
    post-closing trial balance
  60. series of accounting activities included in recording financial information for a fiscal period is called
    accounting cycle
  61. business form used to show an authorized persons approval for a cash payment is called
  62. set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is called
    voucher system
  63. journal used to record vouchers is called
    voucher register
  64. check with space for writing details about a cash payment is called
    voucher check
  65. journal used in a voucher system to record cash payments is called
    check register
  66. goods that are given to a business to sell but for which title remains with the vendor are called
  67. the person or business that receives goods on consignment is called
  68. person or business that gives goods on consignment is called
  69. form used to show the type of merchandise, quantity received, quantity sold, and balance on hand is called
    stock record
  70. a file of stock records for all merchandise on hand is called
    stock ledger
  71. completed form authorizing a seller to deliver goods with payment to be made later is called
    purchase order
  72. form used during a periodic inventory to record information about each item of merchandise on hand is called
    inventory record
  73. using the price of merchandise purchased first to calculate the cost of merchandise sold first is called
  74. FIFO
  75. using the price of merchandise purchased last to calculate the cost of merchandise sold first is called
  76. using the average cost of beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold is called
    weighted-average inventory costing method
  77. using the lower cost or market price to calculate the cost of ending merchandise inventory is called
    lower of cost or market inventory costing method
  78. estimating inventory by using a percentage based on both cost and retail prices is called
    retail method of estimating inventory
  79. the number of times the average amount of merchandise inventory is sold during a specific period of time is called
    merchandise inventory turnover ratio
  80. the period of time needed to sell an average amount of merchandise inventory is called
    average number of days sales in merchandise inventory
  81. accounts receivable that cannot be collected
    uncollectible accounts
  82. canceling the balance of a customer account because the customer is not expected to pay
    writing off an account
  83. uncollectible accounts expense only when an amount is actually known to be uncollectible
    direct write-off method of recording losses from uncollectible accounts
  84. crediting the estimated value of uncollectible accounts to a contra account
    allowance method of recording losses from uncollectible accounts
  85. analyzing accounts receivable according to when they are due
    aging accounts receivable
  86. number of times the average amount of accounts receivable is collected during a specified period
    accounts receivable turnover ratio
  87. difference between the balance of accounts receivable and its contra account, allowance for uncollectible accounts
    book value of accounts receivable
Card Set
Semester One Terms