Accounting Glossary Week 8

A balance taken after adjusting entries have been recorded.

Entries made at the conclusion of a fiscal period to bring accounts up to date.

A formal financial statement illustrating the assests,liabilities, and owner's equity of a business as of a specific date.

An itemized list prepared by the bank of additions to the subtractions from a depositor's account.

The process by which the depositor attempts to reconcile the bank statement balance with the checkbook balance.

A tweleve-month period beginning January 1st and concluding on DEcember 31st.

A check which has been paid by the bank and returned to the drawer for recordkeeping.

A book of original entry in which only cash sales are recorded.

A list of all the account titles and the account numbers assigned to them.

A piece of commercial paper drawn on funds in a bank account and payable on demand.

A form on which information is recorded by the drawer of the check concerning the check drawn; a source document.

In accounting, to record in order of time.

The sorting of the many business transactions in an orderly and systematic manner.

Entries made at the end of each reporting period to transfer the balances of the temporary owner's equity accounts to the permanent owner's equity account and to reduce the balance in the temporary owner's equity accounts to zero in preparation for the next accounting period.

A book of original entry that combines into one journal the features of the two column general journal and a special journal.

An accounting entry that involes more than two accounts.

A source document that grants credit to a buyer for purchase return or purchase allowance; items that the bank adds to the account balance.

The process of entering the journal page number in the ledger and the ledger account number in the journal.

Deposits that have been made and added to depsitor's checkbook, but have not yet been listed on the bank statement.

A bank form that lists those items and individual checks to be deposited.

A Payment

A check not paid by the bank when properly presented.

One who is under the control and direction of an employer with redards to the performance of employment

End of Month

A period of time covered by an income statement.

A condition in which the total of the debits and the total of the credits are equal in an account.

A formal Financial statement which presents the income, expences, and resulting net profit or net loss for a givin period.

A tax levied on the earnings of individuals and business by federal, state, and local governments.

Any person who agrees to perform a service for a fee and who is not subject to the control of those for whom the service is preformed.

Explaining the significant events of developments that occur, usually taking the form of analysis and comparisons.

The difference between gross profit and expenses when expenses are larger.

Net Pay

Purchuses minus purchuses returns and allowances minus puchase discounts

Sales minus returns and allowances minus sales discounts.

A written promise of pay a creditor a certian amount in te future.

A written promise of a customer to pay a business a sum of money at a future date.

Not Sufficient Funds

Checks that have been drawn and subtracted from the depositor's checkbook, but which have not yet been presented to the bank for payment.

A work paper repared after all temporary owner's equity accounts have been closed and all permanent accounts have been balanced and ruled, proving the equality of the debits and credits.

The process of determining whether the amount of cash, both on hand and in the bank, is the same as that which is indicated in the accounting records.

The process that examines each page of a journal, confirming that the debit entries equal the credit entries on each page.

A temporary owner's equity account used to record the earnings of revenue.

An order by a depositor requesting a bank not pay on a check peviously issued.

Bringing accounts data together in a way that will further enhance its usefulness, usually by means of reports and statements.

A work paper proving the equality of the debit and credit balances in the ledger.

Wage and Tax statements; a report furnished by the employer for each employee indicating gross earnings and deductions.

Empolyees' Withholding Allowance Certificate

A form of compensation usally for skilled and unskilled labor, expressed in terms of hours, weeks or pieces completed.

An expanded trial balance utilized for computing, classifying, and sorting accounts balances before preparing the formal financial staements.