1.
account: a record summarizing all the information pertaining to a single item in the accounting equation.
2.
account balance: the amount in an account.
3.
Account Number: The number assigned to an account
4.
account receivalbe ledger: a subsidiary ledger containing only account for charge customers
5.
account title: the name given to an account.
6.
accounting: planning,recording,analyzing, and interpreting financial information.
7.
Accounting Cyclye: the series of accounting activities included in recording financial information for a fiscal period
8.
accounting equation: an equation showing the relationship among assets, liabilities, and owner's equity.
9.
accounting records: organized summaries of a business's financial activities.
10.
accounting system: a planned process for providing accounting information that will be useful to management.
11.
accounts payable ledger: a subsidiary ledger containing only account for vendors from whom merchandise or other items are purchase on account
12.
accumulated depreciation: the total amount of depreciation expense that has been recorded since the purchase of a plant asset.
13.
Adjusting entries: journal entries recorded to update general ledger accounts at the end of a fiscal period
14.
Adjustments: changes recorded on a work sheet to update general ledger accounts at the end of the fiscal period.
15.
allowance method of recording losses from uncollectible accounts: Crediting the estimated value of incollectible accounts to a contra accounts
16.
asset: anything of value that is owned.
17.
Balance Sheet: a financial statement that reports assets, liabilities, and owner's equity on a specific date.
18.
Bank Statement: A report of deposits, withdrawals, and bank balances sent to a depositor by bank
19.
Batch report: A report of credit card sales produced by a point-of-sale terminal is called a batch report.
20.
Batching out: The process of preparing a batch report of credit card sales from a poin-of-sale terminal called batching out.
21.
Blank Endorsment: An endorsment consisting only of the endorser's signature
22.
board of directors: a group of persons elected by the stockholders to manage a corporation
23.
book value: the difference between an assets accounts balance and its related contra account balance.
24.
book value of accounts receivable: the difference between the balance of Accounts Receivable and its contra accounts, Allowance for Uncollectible Accounts
25.
business ethics: the use of ethics in making business decisions.
26.
capital: the account used to summarized the owner's equity in a business.
27.
Capital stock: total shares of ownership in a corporation.
28.
cash discount: a discount from an invoice given for early payment. 2% discount if you pay in 10, net 30
29.
cash over: a petty cash on hand amount more than the recorded amount
30.
cash payments journal-: a special journal used to rcord only cash (check) payment transactions
31.
Cash reciepts journal: A special journal used to record only cash receipt transactions is called a cash receipts journal
32.
Cash Sales: A sale in which cash is received for the total amount of sale at the time of the transaction.
33.
chart of accounts: a list of accounts used by businesses
34.
Check: A business form ordering a bank to pay cash from a bank account
35.
Checking Account: A bank account from which payments can be ordered by a despositor
36.
Closing Entries: journal entries used to prepare temporary accounts for a new fiscal period
37.
Code of Conduct: A statementthat guides the ethical behavior of a company and its employees
38.
component percentage: percentage relationship between one finnancial statement item and the total that includes that item.
39.
contra account: an account that reduces a related account on a financial statement. Ex Owner's Equity-Drawing
40.
controlling account: an account in a general ledger that summarizes all accounts in a subsidiary ledger
41.
Corporation: an organization with the legal rightsof a person and which many persons may own
42.
Correcting Entry: A journal entry made to correct an error in the ledger
43.
Cost of Merchandise Sold: Original price of all merchandise sold during a fiscal period
44.
Cost of Merchandise-: the price a business pays for goods it purchases to sell
45.
Credit: An amount recorded on the right side
46.
Credit Card Sale: A sale in which a credit card used for the total amount of the sale at the time of the transaction.
47.
Credit memoradum: A form prepared by the vendor showing the amountdeducted for returns and allowances is called a credit memordaum
48.
Current Liabilities: Liabilities due within a short time, usually within a year
49.
Currents Assets: cash and other assets expected to be exchanged for cash or consumed within a year
50.
Customer: A person/business to whom merchandise/services are sold.
51.
Debit: An amount recorded on the left side
52.
Debit Card: A bank card that atomatically deducts the amount of a purchases from the checking account of the cardholder
53.
declaring a dividend: action by a board of directors to distribute corporate earnings to stockholders
54.
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.
55.
Dishonored Check: A check that a bank refuses to pay
56.
dividends: earnings distributed to stockholders
57.
double-entry accounting: The recording of debit and credit parts of a transaction
58.
Earnings per share: the amount of net income after federal income tax belonging to a single share of stock
59.
Electronic Funds Transfer: A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
60.
employee earnings record: a business form used to record details affecting payments made to an employee
61.
Endorsment: A signature or stamp on the back of a check transferring ownership
62.
entry: Information for each transaction recorded in a journal
63.
equities: financial rights to the assets of a business.
64.
estimated salvage value: the amount an owner expects to receive when a plant asset is removed from use
65.
ethics: the principles of right and wrong that guide an individual in making decisions.
66.
expense: a decrease in owne's equity resulting from the operation of a business.
67.
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
68.
File Maintenance: The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
69.
Financial Ratio: Comparison between two items of financial information
70.
financial statements: financial reports that summarize the financial condition and operations of a business.
71.
Fiscal Period: the length for time for which a business summarizes and reports financial information
72.
general journal: A journal with two amount columns in which all kinds of entries can be recorded
73.
General Ledger: A ledger that contains all accounts needed to prepare financial statements
74.
Gross Profit on Sales: Revenue remaining after cost of merchandise sold has been deducted
75.
Income Statement: a financial statement showing the revenue and expenses for a fiscal period.
76.
Invoice: A form describing the goods or services sold, the quantity, and the price
77.
journal: A form for recording transactions in chronological order
78.
journalizing: Recording transactions in a journal
79.
Ledger: A group of accounts
80.
liability: an amount owed by a business.
81.
Long-term Liabilities: Liabilities owed for more than a year
82.
lookback period: the 12 month period that ends on June 30th of the prior year
83.
Markup-: the amount added to the cost of merchandise to establish the selling price.
84.
medicare tax: a federal tax paid for hospital insurance
85.
memorandum: A form on which a brief message is written describing a transaction
86.
merchandise inventory: the amount of goods on hand for sale to customers.
87.
Merchandise-: Goods that a merchandising business purchases to sell.
88.
Merchandising Business-: a business that purchases and sells goods.
89.
Net Income: the difference between total revenue and total expenses when total revnue is greater.
90.
Net Loss: the difference between total revenue and total expenses when total expenses are greater.
91.
net pay: the total earnings paid to an employee after payroll taxes and other deductions
92.
Net Sales: Total sales less sales discount and sales returns and allowances
93.
normal balance: the side of the account that is increased
94.
Opening An Account: Writing an account title and number on the heading of an account
95.
owner's equity: the amount remaining after the value of all liabilities is subtracted from the value of its assests.
96.
Par Value: A value assigned to a share of stock and printed on the stock certificate
97.
pay period: the period covered by a salary payment
98.
payroll: the total amount earned by all employees for a pay period
99.
payroll register: a business formed used to record payroll information
100.
payroll taxes: taxes based on the payroll of a business
101.
Permanent Accounts: accounts used to accumulate information from one fiscal period to the next
102.
Petty Cash: An amount of cash kept on hand and used for making small payments
103.
Petty Cash Slip: A form showing proof of a petty cash payment
104.
plant assets: asstes that will be used for a number of years in the operation of a bussiness
105.
Point of State: A computer used to collect, store, and report all the info of a sales transaction.
106.
Post Closing Trial Balance: a trial balance prepared after the closing entries are posted
107.
Postdated Check: A check with a future date on it
108.
Posting: Transferring information from a journal entry to a ledger account
109.
Price-earning ratio: The relationship between the market value per share and earnings per share of a stock
110.
proprietorship: a business owned by one person.
111.
Proving Cash: Determining that the amount of cash agrees with the balance of the cash account in the accounting records
112.
Purchase on Account-: a transaction in which the merchandise purchased is to be paid for later.
113.
Purchases on Journal-: a special journal used to record only purchases of merchandise on account.
114.
Receipt: A buisness form giving written acknowledgement for cash received
115.
Restrictive Endorsment: An endorsment restricting further transfer of a check's ownership
116.
Retail Merchandising Business: A Merchandising business that sells to those who use or consume the goods.
117.
retained earnings: an amount earned by a corportation and not yet distributed to stockholders
118.
revenue: an increase in an owner's equity resulting from the operation of a business.
119.
salary: money paid for employee services
120.
sale on account: a sale for which cash will be received at a later date.
121.
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.
122.
Sales discount: A cash discount on sales taken by customer.
123.
Sales Invoice: An invoice used as a source document for recording a sale on account
124.
Sales Journal: A special used to record only sales of merchandise.
125.
Sales return: Resulting in a decrease in the vendors accounts recieveable, is called a sales return
126.
Sales Tax: A tax on a sale of merchandise/service.
127.
schedule of account payable: a listing of vendor accounts, account balances, and total amount due all vendors
128.
schedule of account receivable: a listing of customer accounts, account balances, and total amount due from all customers
129.
service business: a business that performs an activity for a fee.
130.
Share of stock: each unit of ownership in a corporation.
131.
social security tax: a federal tax paid for old-age, survivors, and disability insurance
132.
source document: A business paper from which information is obtain for a journal entry
133.
Special Endorsment: An endorsment indicating a new owner of a check
134.
Special journal: a journal used to record only one kind of transaction
135.
stakeholder: any person or groups who will be affected by affected by an action
136.
state unemployment tax: a state tax used to pay benefits to unemployeed workers
137.
Statement of stockholders equity: A financial statement that shows changes in a coporations ownership
138.
Stockholder: owner of one or more shares of a corporation.
139.
straight-line method of depreciation: charging an equal amount of depreciation expense for a plant asset in each year
140.
subsidiary ledger: a ledger that is summarized in a single general ledger account
141.
Supporting Schedule: A report preapred to give details about an item on a principal financial statement
142.
T account: An accounting device used to analyze transactions..
143.
tax base: the maximum amount of earnings on which a tax is calculated
144.
Temporary Accounts: accounts used to accumulate information until it is transferred to the owner's capital account
145.
Terminal Summary: The report that summarizes the cash and credit card sales of a point-of-sale terminal.
146.
total earnings: the total pay due for a pay period before deductions
147.
transaction: a business activity that changes assets, liabilities, or owner's equity.
148.
Trial Balance: Trial balance: a proof of the equality of the debits and credits in a general ledger
149.
uncollectible accounts: accounts receivable that cannot be collected
150.
Vendor-: a business from which merchandise is purchased or supplies or other assets are bought.
151.
Wholesale Merchandising Business: a business that buys and resells merchandise to retail merchandising businesses.
152.
withdrawals: assets taken out of a business for the owner's personal use.
153.
withholding allowance: a deduction from total earnings for each person legally supported by a tax payer
154.
Work Sheet: Work sheet: a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
