Accounting 1 CHS Unit 1 Test

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Unit one test for CHS

1. Accountant

a person who handles a broad range of jobs related to the making of choices and decisions about the design for a business accounting system and the preparation and explanation of financial reports

2. Accounting

planning, recording, analyzing, and interpreting financial activities

3. Accounting clerk

entry-level job that can vary with the size of the company from specialization in one part of the system to a wide range of recordkeeping tasks

4. Accounting equation

an equation showing the relationship among assets, liabilities, and owner's equity

5. Accounts payable

the amount of money owed, or payable, to the creditors of a business

6. Accounts receivable

the total amount of money owed to a business

7. Adjusting entry

journal entries recorded to update general ledger accounts at the end of a fiscal period

8. Adjustments

an amount that is added to or subtracted from an account balance to bring the balance up to date

9. Asset

anything of value that is owned

10. Balance sheet

a financial statement that reports assets, liabilities, and owner's equity on a specific date

11. Bookkeeper

a person who keeps regular, concise, accurate records of business transactions by entering them in account books

12. Capital

the account used to summarize the owner's equity in a business

13. Chart of accounts

a list of accounts used by a business

14. Check

a business form ordering a bank to pay cash from a bank account

15. Chronological

arranged in or according to the order of time

16. Closing entry

journal entries used to prepare temporary accounts for a new fiscal period

17. Contra account

an account whose balance decreases another account's balance

18. Corporation

an organization with the legal rights of a person and which may be owned by many people

19. Double-entry accounting

the recording of debit and credit parts of a transaction

20. Drawing

an account showing the total assets taken out of the business by the owner

21. Entry-level jobs

the first jobs that individuals get

22. Equity

financial rights to the assets of a business

23. Ethical

conforming to accepted and established professional standards of conduct

24. Expenses

a decrease in owner's equity from the operation of a business

25. Financial statement

a report prepared to summarize the changes resulting from business transactions that occur during an accounting period

26. Fiscal period

the length of time for which a business summarizes and reports financial information

27. General journal

a journal with two amount columns in which all kinds of entries can be recorded

28. General ledger

a ledger that contains all accounts needed to prepare financial statements

29. General office clerk

may be in charge of a small cash fund, file accounting records, type accounting reports

30. Income

a gain measured in money that derives from capital or labor; also the amount of such gain received by an individual in a given period of time

31. Income statement

a financial statement showing the revenue and expenses for a fiscal period

32. Inventory

the amount of goods on hand

33. Journalizing

recording transactions in a journal

34. Liability

an amount owed by a business

35. Memorandum

a form on which a brief message is written describing a transaction

36. Merchandise

goods that a merchandising business purchases to sell

37. Partnership

a business in which two or more people combine their assets and skills

38. Petty cash

an amount of cash kept on hand and used for making small payments

39. Post-closing trial balance

a trial balance prepared after the closing entries are posted

40. Posting

transferring information from a journal entry to a ledger account

41. Proprietorship

a business owned by one person

42. Proving

determining that amounts are in agreement or in balance

43. Proving cash

determining that the amount of cash agrees with the accounting records

44. Public accounting firm

a business selling accounting services to the general public

45. Purchase

to gain possession by paying money or the equivalent

46. Receipt

a business form giving written acknowledgment for cash received

47. Reconciling

verifying that information on a bank statement and a checkbook are in agreement

48. Revenue

an increase in owner's equity resulting from the operation of a business

49. Special amount column

a journal amount column headed with an account title

50. Subsidiary ledger

a ledger that is summarized in a single general ledger account

51. Transaction

a business activity that changes assets, liabilities, or owner's equity

52. Trial balance

a proof of the equality of debits and credits in a general ledger

53. Vendor

a business from which merchandise is purchased or supplies or other assets are bought

54. Withdrawal

assets taken out of a business for the owner's personal use

55. Work sheet

a columnar accounting form used to summarize the general ledger information needed to prepare financial statements

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