a record summarizing all the information pertaining to a single item in the accounting equation.
the amount in an account.
The number assigned to an account.
the name given to an account.
The series of accounting activities included in recording financial information for a fiscal period.
An equation showing the relationship among assets, liabilities, and owner's equity.
Accounting Period Cycle Concept
changes in financial information are reported for a specific period of time in the form of financial statements.
an organized summary of a business's financial activities.
a planned process for providing financial information that will be useful to management.
Adequate Disclosure Concept
financial statements that contain all information necessary to understand a business's financial condition.
Journal entries recorded to update general ledger accounts at the end of a fiscal period.
changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
Any items of value that you own.
a financial statement that reports assets, liabilities, and owner's equity on a specific date.
Business Entity Concept
financial information is recorded and reported separately from the owner's personal financial information.
the account used to summarize the owner's equity in a business.
Chart of Accounts
A list of accounts used by a business.
Journal entries used to prepare temporary accounts for a new fiscal period.
Consistent Reporting Concept
the same accounting procedures are followed in the same way in each accounting period.
a journal entry made to correct an error in the ledger.
an entry to the right side of a T account.
An amount recorded on the left side of a T Account.
financial rights to the assets of a business.
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
the length of time for which a business summarizes and reports financial information.
a ledger that contains all accounts needed to prepare financial statements.
Going Concern Concept
financial statements are prepared with the expectation that a business will remain in operation indefinitely.
a financial statement showing the revenue and expenses for a fiscal period.
a group of accounts.
an amount owed by a business.
Matching Expenses With Revenue Concept
revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
The difference between total revenue and total expenses when total revenue is greater.
The difference between total revenue and total expenses when total expenses are greater.
Objective Evidence Concept
a source document is prepared for each transaction.
Opening an Account
writing an account title and number on the heading of an account.
the amount remaining after the value of all liabilities is subtracted from the value of all assets.
accounts used to accumulate information from one fiscal period to the next.
Post-Closing Trial Balance
A trial balance prepared after the closing entries are posted.
Transferring information from a journal entry to a ledger account.
a business owned by one person.
accounts used to accumulate information until it is transferred to the owner's capital account.
a business activity that changes assets, liabilities, or owner's equity.
a proof of the equality of debits and credits in a general ledger.
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.