Set: ACC: 1st Semester Final: Vocabulary

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All 38 Terms

Term Definition
balance sheet a financial statement that reports the final balances in all the asset, liability and owner’s equity accounts at the end of the fiscal period
Balance Sheet Section the section of the work sheet whereto the permanent general ledger accounts are extended
bank service charge a fee charged by the bank for maintaining bank records and for processing bank statement items for the depositor
bank statement an itemised record of all the transactions occurring in a depositor’s account over a given period
canceled cheques cheques that have been paid by the bank, deducted from the depositor’s account, and returned with the bank statement
cheque a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the order
chequing account used by a business to deposit cash in a bank and write cheques against the account balance
closing entries journal entries made to close out or reduce to zero the balances in the temporary capital accounts and then transfer the net income or loss to the capital account
compound entry a journal entry having two or more debits and/or credits
deposit slip the bank form whereon the currency and cheques to be deposited are listed
depositor a person or business who has cash on deposit at a bank
drawee the bank on which a cheque is written
drawer the person who signs a cheque
electronic funds transfer system enables banks to transfer funds from the account of one depositor to the account of another quickly and accurately without the immediate exchange of cheques
endorsement an authorised signature that is written or stamped on the back of a cheque
external controls outside controls a business can use to protect its cash and other assets
financial statements summarise the changes resulting from business transactions that have occurred during a fiscal period
income statement reports a business’s net income or net loss for a fiscal period
Income Summary the account in the general ledger used for summarising the revenue and expenses for a fiscal period
internal controls steps that a business takes to protect its cash and other assets
matching principle states that revenue should be matched against the expenses incurred to earn that revenue
net income results when revenue is greater than expenses
net loss if the total of the Credit column of the Income Statement section is less than the Debit column
NSF cheque a cheque returned by the bank because the drawer’s chequing account does not have sufficient funds to cover the amount of the cheque
outstanding cheques cheques written but not yet presented to the bank for payment
outstanding deposits deposits that have been recorded in the chequebook but do not appear on the bank statement
payee the person or business to whom a cheque is written
post-closing trial balance is prepared to make sure the total debits are equal to the total credits in the general ledger after the closing entries have been posted
ratio analysis a numerical comparison of two items on a financial statement used to evaluate the relationship between the two items
reconciling the bank statement the process of determining any differences between a bank statement’s balance and the chequebook balance
report form on a balance sheet prepared in this form, the classifications of accounts appear one under the other
restrictive endorsement limits how a cheque may be handled
return on sales this ratio is calculated by dividing net income by net sales
ruling means drawing a line under a column of amounts
signature card is prepared containing the signature(s) of the person(s) authorised to write cheques on the bank account, in order to protect and account holder and the bank against cheques with forged signatures
statement of changes in owner's equity a report summarising the effects of various business transactions on the capital account
stop payment order a demand by the depositor that the bank not honour a certain specific cheque
voiding a cheque the practice of marking a cheque that has an error so it will not be used

Set Information

Terms 38
Creator ioannusdeverani
Created January 31, 2008
Groups None
Tags accounting, vocab
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ioannusdeverani : Changed chequing account → used a a business to deposit cash in a bank and write cheques against the account balance to chequing account → used by a business to deposit cash in a bank and write cheques against the account balance
ioannusdeverani : Changed statement of changes in owner’s equity → a report summarising the effects of various business transactions on the capital account to statement of changes in owner's equity → a report summarising the effects of various business transactions on the capital account
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Most Missed Words

  1. deposit slip → the bank form whereon the currency and cheques to be deposited are listed - 2 misses
  2. balance sheet → a financial statement that reports the final balances in all the asset, liability and owner’s equity accounts at the end of the fiscal period - 1 miss
  3. cheque → a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the order - 1 miss
  4. compound entry → a journal entry having two or more debits and/or credits - 1 miss
  5. drawer → the person who signs a cheque - 1 miss
  6. financial statements → summarise the changes resulting from business transactions that have occurred during a fiscal period - 1 miss
  7. ratio analysis → a numerical comparison of two items on a financial statement used to evaluate the relationship between the two items - 1 miss