54 terms

Accounting Project

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Journalize and Post Closing Entries
Step 8 in the Accounting Cycle
Prepare a Post-Closing Trial Balance
Step 9 in the Accounting Cycle
Compound Entry
An entry in which there is more than one Credit/Debit
Collect and verify source documents
Step 1 in the Accounting Cycle
Analyze each transaction
Step 2 in the Accounting Cycle
Journalize each transaction
Step 3 in the Accounting Cycle
Assets = Liabilities + Owner's Equity
The Accounting Equation
Expenses
The second account closed is _____________
Revenue
The first account closed is ____________
Withdrawals
The last account closed is _____________
Credit Side
To close a fees account, make an entry on the ___________
Post the closing entries to the General Ledger
Immediately after journalizing the closing entries, you...
Income Summary has a Credit Balance
When there is a Net Income (Step 8)...
A Zero Balance
To close a revenue account, the balance must be __________
Income Summary Account
An account used to accumulate and summarize the Revenue/Expenses for the period
Post-Closing Trial Balance
A document that make sure credits and debits equal after closing entries are made
Prepare a worksheet
Step 6 in accounting cycle
A decrease to Liabilities OR an increase to Assets
An increase to the Capital account would require...
Filled out first in the worksheet
Trial Balance
Cash in Bank and Office Furniture
Conner sells his office chair for cash. What accounts are affected?
Balance sheet
What is filled out second in the worksheet?
Revenue, Expenses, Withdrawals
Types of temporary accounts
Assets
Accounts Receivable is what type of account?
Liabilities
Accounts Payable is what type of account?
Owner's Equity
Capital is what kind of account?
Prepare Financial Statements
Step 7 in the accounting cycle
Accounts Payable
If you owe a business money, you use this account
Decrease to Capital
A Net loss has what affect on Owner's Equity accounts?
Accounts Receivable
If a business owes you money, use this account
Net Income/Net Loss
Instead of totals, on a worksheet _________ is listed
Post to the Ledger
Step 4 in the accounting cycle
Prepare a Trial Balance
Step 5 in the accounting cycle
6 columns
How many columns does a worksheet have?
The balances are equal
What does a double rule mean?
Add the numbers above
What does a single rule mean?
Slide Error
When an amount of $90 is written as $900, what type of error has occurred?
Transposition Error
When an amount of $420 is written as $240, what type of error has occurred?
Proving the Ledger
Adding all the debit and all the credit balances of accounts in the ledger to determine whether the two totals are equal is called...
Correcting Entry
An entry made in the ledger to "fix" an error that has occurred is called...
Double-entry Accounting
The financial recordkeeping system in which each business transaction affects at least two accounts
Fiscal Year
An accounting period (year) that doesn't go from January 1st to December 31st
Calendar Year
An accounting period (year) that starts on January 1st and ends on December 31st
Chart of Accounts
A __________ is a list of all the accounts a business uses.
Check Stub
The source document for recording a cash payment transaction is a _________
Memorandum
The source document that deals with transactions WITHIN a business is a __________
Receipt
The source document prepared when cash is received is a _______
Current Ratio
The relationship between current assets and current liabilities
Liquidity Ratio
A _______ is a measure of a business's ability to pay its current debts as they become due and to provide for unexpected needs of cash.
Return on Sales
This ratio analyzes how much of each dollar in sales is actually profit.
Quick Ratio
A measure of the relationship between short-term assets and current liabilities.
Profitability Ratios
These ratios are used to evaluate the earnings performance of the business during the accounting period.
Statement of Changes in Owner's Equity
This financial document is created to accompany the Balance Sheet.
Permanent Accounts
Accounts that carry their balance onto the next accounting period.
Temporary Accounts
Accounts that get zeroed at the end of the accounting period.