Accounting Review

Another term for "bookkeeper"
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Terms in this set (80)
Another term for "bookkeeper"
An Accounting Clerk
A type of business whose goal is to serve society rather than to earn a profit.
Non-Profit Organization
An accountant who may be hired by various individuals or small businesses, rather than do accounting work for a single company.
Public Accountant
The set of accounting procedures which are repeated during each fiscal period.
Accounting Cycle
The process of collecting, recording, organizing, reporting and analyzing the financial information of business.
Accountant
A business which has more than one owner.
Partnership
The time period (usually one year) over which the earnings of a business are measured.
Fiscal period/year
A business that buys goods and resells them for a profit.
Merchandising/Retailer Business
A business owned by only one person
Sole Proprietorship
A business owned by shareholders
Corporation
The process of examining the books of a business for accuracy and the use of proper accounting proceduresAuditingA business which purchases raw materials and converts them into consumer goods for saleManufacturing or producing businessThe financial statement showing the financial position of a business, person or organization at a particular point in timeBalance SheetAnother term for "net worth"CapitalA person who owes money to a businessDebtorAn item of value owned by a businesAssetThe process of selling the assets of a business for cash.LiquidationAn amount owned by a business to a creditorAccounts payable, debtA debt; for example, AP or Bank LoanLiabilityA term describing how easily an asset can be converted into cashLiquidityA person to whom money is owedCreditorThe term used to identify the left side of an accountDebitThe name given to this expression: assets = liabilities + owner's equityAccounting EquationAn amount of money owed to a business by a customerAccount ReceivableThe balance of a T-account (circled and written in smaller figures)Pin TotalA group of accounts, in a special book or fileLedgerA list of business's accounts and their balances, used to check that debits equals creditsTrail BalanceThe system of recording ant transaction using the two accounts, with debits matching creditsDouble entry/accountingThe term used to describe a trail balance in which debits do not equal creditsOut of balanceA page which is used to record the changes in each individual item affecting the financial position of a businessAccountThe total of an accountBalanceThe right side of a T-accountCreditA trail balance in which debits equal creditsIn balanceA list similar to a table of contents, listing the account names and their numbers of a particular businessChart of accountsA situation which exist when expenses are greater than revenuesNet lossAnother term for "net profit"Net IncomeThe opposite of "expense"RevenueAn owner's equity account used to record any cash or other assets taken by the owner for personal useDrawingsA group of accounts used to record particular cost associated with earning a revenueExpensesThe financial statement which illustrates the profitability of a business over a specific period of timeIncome statementA period of time over which the accounting cycle period of a business is completedFiscal periodAnother term for "book of original entry"JournalThe first journal entry made by a new business, before any transactions occurOpening EntryA bill, issued to a customer who has made a purchase on accountSales invoiceThe source document which provides proof that a cash sale was madeCash sales slipA business paper which provides proof that a particular transaction occurredSource documentsA source document received when making a purchase on accountPurchase InvoiceThe process of recording entries in a journalJournalizingA notice from the bank, stating that money was taken from a business's account for service chargesDebit MemoA list of the customers who made payments on account on a particular day, the amount each paid and the total collectedCash Receipt Daily SummaryThe source document which a business retains as proof that it made a cash paymentCheque copyA special journal entry, used to correct an error made earlierCorrecting entryThe process of copying information from the journal to the ledgerPostingThe name of an accountTitleThe process of preparing a ledger page for a new accountOpening on accountThe process of continuing an existing account on a new page because the previous page is fullForwarding on accountDuring posting, the process of recording the journal page number in the ledger, and the account number in the journalCross-referencingThe form of balance sheet where the accounts are listed verticallyReportThe form of balance sheet where accounts are listed horizontallyAccount formA way to organize a balance sheet into current and long-term itemsClassificationA form used to organize ledger accounts prior to preparation of financial statementsWorksheetThe figure on the worksheet which balances debits and credits in both the income statement and balance sheet columnsNet Income or Net LossAnother term for long-term assetsFixed Asset (Plant and Equipment)The term which identifies liabilities that are due within one yearCurrentThe term which identifies liabilities which are due after one yearLong TermAccounting entries made at the end of the cycle, first appearing on the worksheetAdjustments (adjusting entry)The type of account that a prepaid expense really is, rather than being an actual expenseAssetThe name of the account which shows the total depreciation of an asset, since the time it was purchasedAccumulated DepreciationThe method of calculating depreciation which requires reference to a table of depreciation rates for various classes of assetsDeclining BalanceThe method of calculating depreciation which needs to be completed only once, as the amount will be the same each yearStraight LineThe name of the account which is used only once a year, when closing accountsIncome SummaryThe name used to identify the group of accounts which are closed at the end of a fiscal periodNominalThe name used to identify the group of accounts which remain open from one fiscal period to the nextRealA cheque which has been returned by the bank because it has "bounced"NSF (Non sufficient funds)A small amount of cash, kept in the office, for small expendituresPetty CashA document which is prepared when there is no original source document available to support a petty cash transactionPetty cash voucherThe term used to describe setting up a petty cash fundEstablishingThe term used to describe renewing a petty cash fund and journalizing the transactions for which it was usedReplenishingA ledger that contains detailed information of accounts of a particular type, such as AR or APSubsidiary LedgerA general ledger account that shows the total of a particular subsidiary ledgerControlled accounts