Accounting Chapters 1-5
About this set
Created by:
jennastearns on September 27, 2011
Subjects:
Log in to favorite or report as inappropriate.
Order by
58 terms
Terms | Definitions |
|---|---|
 account | a record summarizing all the information pertaining to a single item in the accounting equation |
| account balance | the amount in an account |
| account title | a name given to an account |
| accounting | planning, recording, analyzing, and interpreting financial information |
| accounting equation | an equation showing the relationship among assets, liabilities, and owner's equity |
| accounting record | organized summaries of a business's financial activities |
| accounting system | a planned process for providing financial information that will be useful to management |
| asset | anything of value that is owned |
| business ethics | the use of ethics in making business decisions |
| capital | the account used to summarize the owner's equity in a business |
| equities | financial rights to the assets of a business |
| ethics | principles of right and wrong that guide an individual in making decisions |
| expense | a decrease in owner's equity resulting from the operation of business |
| financial statements | financial reports that summarize the financial condition and operations of a business |
| owner's equity | the amount remaining after the value of all the liabilities is subtracted from the value of all assets |
| proprietorship | a business owned by one person |
| liability | an amount owed by a business |
| revenue | an increase in owner's equity resulting from the operation of a business |
| sale on account | a sale for which the cash will be received at a later date |
| service business | a business that performs an activity for a fee |
| transaction | a business activity that changes assets, liabilities, or owner's equity |
| withdrawals | assets taken out of a business for the owner's personal use |
| chart of accounts | a list of accounts used by a business |
| credit | an amount recorded on the right side of a "T" account |
| debit | an amount recorded on the left side of a "T'' account |
| normal balance | the side of the account that is increased |
| "T" account | an account device used to analyze transactions |
| check | a business form ordering a bank to pay cash from a bank account |
| double-entry accounting | the recording of debit and credit parts of a transaction |
| entry | information for each transaction recorded in a journal |
| invoice | a form describing the goods or services sold, the quantity, and the price |
| general journal | a journal with two amount columns in which all kinds of entries can be recorded |
| journal | a form for recording transactions in chronological order |
| journalizing | recording transactions in a journal |
| memorandum | a form on which a brief message is written describing a transaction |
| receipt | a business form giving written acknowledgement for cash received |
| sales invoice | an invoice used as a source document for recording a sale on account |
| source document | a business paper from which information is obtained for a journal entry |
| account number | the number assigned to an account |
| correcting entry | a journal entry made to correct an error in a previous journal entry |
| file maintenance | the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current |
| general ledger | a ledger that contains all accounts needed to prepare financial statements |
| ledger | a group of accounts |
| opening an account | writing an account title and number on the heading of an account |
| posting | transferring information from a journal entry to a ledger account |
| proving cash | determining that the amount of cash agrees with the balance of the cash account in the accounting records |
| code of conduct | a statement that guides the ethical behavior of a company and it's employees |
| checking account | bank account from which payments can be ordered by a depositer |
| endorsement | signature or stamp on the back of a check transferring ownership |
| blank endorsement | endorsement consisting only of the endorser's signature |
| special endorsement | endorsement indicating a new owner of the check |
| restrictive endorsement | endorsement restricting further transfer of a check's ownership |
| postdated check | a check with a future date on it |
| bank statement | report of deposits, withdrawals, and bank balances sent to a depositor by a bank |
| dishonored check | check that a bank refuses to pay |
| debit card | bank card that automatically deducts the amount of a purchase from the checking account of the card holder |
| petty cash | amount of cash kept on hand and used for making small payments |
| petty cash slip | form showing proof of a petty cash payment |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.