Accounting-Century 21

Created by mrs_morrissey 

Upgrade to
remove ads

Student generated vocabulary list from the textbook

accounting

planning,recording,analyzing, and interpreting financial information.

account

a record summarizing all the information pertaining to a single item in the accounting equation.

account balance

the amount in an account.

Account Number

The number assigned to an account

account receivalbe ledger

a subsidiary ledger containing only account for charge customers

account title

the name given to an account.

Accounting Cyclye

the series of accounting activities included in recording financial information for a fiscal period

accounting equation

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

accounting records

organized summaries of a business's financial activities.

accounting system

a planned process for providing accounting information that will be useful to management.

accounts payable ledger

a subsidiary ledger containing only account for vendors from whom merchandise or other items are purchase on account

accumulated depreciation

the total amount of depreciation expense that has been recorded since the purchase of a plant asset.

Adjusting entries

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

Adjustments

changes recorded on a work sheet to update general ledger accounts at the end of the fiscal period.

allowance method of recording losses from uncollectible accounts

Crediting the estimated value of incollectible accounts to a contra accounts

asset

anything of value that is owned.

Balance Sheet

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

Bank Statement

A report of deposits, withdrawals, and bank balances sent to a depositor by bank

Batch report

A report of credit card sales produced by a point-of-sale terminal is called a batch report.

Batching out

The process of preparing a batch report of credit card sales from a poin-of-sale terminal called batching out.

Blank Endorsment

An endorsment consisting only of the endorser's signature

board of directors

a group of persons elected by the stockholders to manage a corporation

book value

the difference between an assets accounts balance and its related contra account balance.

book value of accounts receivable

the difference between the balance of Accounts Receivable and its contra accounts, Allowance for Uncollectible Accounts

business ethics

the use of ethics in making business decisions.

capital

the account used to summarized the owner's equity in a business.

Capital stock

total shares of ownership in a corporation.

cash over

a petty cash on hand amount more than the recorded amount

cash discount

a discount from an invoice given for early payment. 2% discount if you pay in 10, net 30

cash payments journal-

a special journal used to rcord only cash (check) payment transactions

Cash reciepts journal

A special journal used to record only cash receipt transactions is called a cash receipts journal

Cash Sales

A sale in which cash is received for the total amount of sale at the time of the transaction.

chart of accounts

a list of accounts used by businesses

Check

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

Checking Account

A bank account from which payments can be ordered by a despositor

Closing Entries

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

Code of Conduct

A statementthat guides the ethical behavior of a company and its employees

component percentage

percentage relationship between one finnancial statement item and the total that includes that item.

contra account

an account that reduces a related account on a financial statement. Ex Owner's Equity-Drawing

controlling account

an account in a general ledger that summarizes all accounts in a subsidiary ledger

Corporation

an organization with the legal rightsof a person and which many persons may own

Correcting Entry

A journal entry made to correct an error in the ledger

Cost of Merchandise-

the price a business pays for goods it purchases to sell

Cost of Merchandise Sold

Original price of all merchandise sold during a fiscal period

Credit

An amount recorded on the right side

Credit Card Sale

A sale in which a credit card used for the total amount of the sale at the time of the transaction.

Credit memoradum

A form prepared by the vendor showing the amountdeducted for returns and allowances is called a credit memordaum

Current Liabilities

Liabilities due within a short time, usually within a year

Currents Assets

cash and other assets expected to be exchanged for cash or consumed within a year

Customer

A person/business to whom merchandise/services are sold.

Debit

An amount recorded on the left side

Debit Card

A bank card that atomatically deducts the amount of a purchases from the checking account of the cardholder

declaring a dividend

action by a board of directors to distribute corporate earnings to stockholders

depreciation expense

the portion of a plant asset's cost that is transferred to an expense accounts in each fiscal period during a plant assets useful life.

Dishonored Check

A check that a bank refuses to pay

dividends

earnings distributed to stockholders

double-entry accounting

The recording of debit and credit parts of a transaction

Earnings per share

the amount of net income after federal income tax belonging to a single share of stock

Electronic Funds Transfer

A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents

employee earnings record

a business form used to record details affecting payments made to an employee

Endorsment

A signature or stamp on the back of a check transferring ownership

entry

Information for each transaction recorded in a journal

equities

financial rights to the assets of a business.

estimated salvage value

the amount an owner expects to receive when a plant asset is removed from use

ethics

the principles of right and wrong that guide an individual in making decisions.

expense

a decrease in owne's equity resulting from the operation of a business.

federal unemployment tax

a federal tax used for state & federal administrative expenses of the unemployment program. It is 6.2% of the first $7,000 earned by each employee

File Maintenance

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

Financial Ratio

Comparison between two items of financial information

financial statements

financial reports that summarize the financial condition and operations of a business.

Fiscal Period

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

general journal

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

General Ledger

A ledger that contains all accounts needed to prepare financial statements

Gross Profit on Sales

Revenue remaining after cost of merchandise sold has been deducted

Income Statement

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

Invoice

A form describing the goods or services sold, the quantity, and the price

journal

A form for recording transactions in chronological order

journalizing

Recording transactions in a journal

Ledger

A group of accounts

liability

an amount owed by a business.

Long-term Liabilities

Liabilities owed for more than a year

lookback period

the 12 month period that ends on June 30th of the prior year

Markup-

the amount added to the cost of merchandise to establish the selling price.

medicare tax

a federal tax paid for hospital insurance

memorandum

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

Merchandise-

Goods that a merchandising business purchases to sell.

merchandise inventory

the amount of goods on hand for sale to customers.

Merchandising Business-

a business that purchases and sells goods.

Net Income

the difference between total revenue and total expenses when total revnue is greater.

Net Loss

the difference between total revenue and total expenses when total expenses are greater.

net pay

the total earnings paid to an employee after payroll taxes and other deductions

Net Sales

Total sales less sales discount and sales returns and allowances

normal balance

the side of the account that is increased

Opening An Account

Writing an account title and number on the heading of an account

owner's equity

the amount remaining after the value of all liabilities is subtracted from the value of its assests.

Par Value

A value assigned to a share of stock and printed on the stock certificate

pay period

the period covered by a salary payment

payroll

the total amount earned by all employees for a pay period

payroll register

a business formed used to record payroll information

payroll taxes

taxes based on the payroll of a business

Permanent Accounts

accounts used to accumulate information from one fiscal period to the next

Petty Cash

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

Petty Cash Slip

A form showing proof of a petty cash payment

plant assets

asstes that will be used for a number of years in the operation of a bussiness

Point of State

A computer used to collect, store, and report all the info of a sales transaction.

Post Closing Trial Balance

a trial balance prepared after the closing entries are posted

Postdated Check

A check with a future date on it

Posting

Transferring information from a journal entry to a ledger account

Price-earning ratio

The relationship between the market value per share and earnings per share of a stock

proprietorship

a business owned by one person.

Proving Cash

Determining that the amount of cash agrees with the balance of the cash account in the accounting records

Purchase on Account-

a transaction in which the merchandise purchased is to be paid for later.

Purchases on Journal-

a special journal used to record only purchases of merchandise on account.

Receipt

A buisness form giving written acknowledgement for cash received

Restrictive Endorsment

An endorsment restricting further transfer of a check's ownership

Retail Merchandising Business

A Merchandising business that sells to those who use or consume the goods.

retained earnings

an amount earned by a corportation and not yet distributed to stockholders

revenue

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

salary

money paid for employee services

sale on account

a sale for which cash will be received at a later date.

Sales allowance

Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decreased in the vendor's accounts rec.

Sales discount

A cash discount on sales taken by customer.

Sales Invoice

An invoice used as a source document for recording a sale on account

Sales Journal

A special used to record only sales of merchandise.

Sales return

Resulting in a decrease in the vendors accounts recieveable, is called a sales return

Sales Tax

A tax on a sale of merchandise/service.

schedule of account payable

a listing of vendor accounts, account balances, and total amount due all vendors

schedule of account receivable

a listing of customer accounts, account balances, and total amount due from all customers

service business

a business that performs an activity for a fee.

Share of stock

each unit of ownership in a corporation.

social security tax

a federal tax paid for old-age, survivors, and disability insurance

source document

A business paper from which information is obtain for a journal entry

Special Endorsment

An endorsment indicating a new owner of a check

Special journal

a journal used to record only one kind of transaction

stakeholder

any person or groups who will be affected by affected by an action

state unemployment tax

a state tax used to pay benefits to unemployeed workers

Statement of stockholders equity

A financial statement that shows changes in a coporations ownership

Stockholder

owner of one or more shares of a corporation.

straight-line method of depreciation

charging an equal amount of depreciation expense for a plant asset in each year

subsidiary ledger

a ledger that is summarized in a single general ledger account

Supporting Schedule

A report preapred to give details about an item on a principal financial statement

T account

An accounting device used to analyze transactions..

tax base

the maximum amount of earnings on which a tax is calculated

Temporary Accounts

accounts used to accumulate information until it is transferred to the owner's capital account

Terminal Summary

The report that summarizes the cash and credit card sales of a point-of-sale terminal.

total earnings

the total pay due for a pay period before deductions

transaction

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

Trial Balance

Trial balance: a proof of the equality of the debits and credits in a general ledger

uncollectible accounts

accounts receivable that cannot be collected

See More

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set