Accounting 1 CHS Unit 1 Test

Unit one test for CHS
1. Accountant
a person who handles a broad range of jobs related to the making of choices and decisions about the design for a business accounting system and the preparation and explanation of financial reports
2. Accounting
planning, recording, analyzing, and interpreting financial activities
3. Accounting clerk
entry-level job that can vary with the size of the company from specialization in one part of the system to a wide range of recordkeeping tasks
4. Accounting equation
an equation showing the relationship among assets, liabilities, and owner's equity
5. Accounts payable
the amount of money owed, or payable, to the creditors of a business
6. Accounts receivable
the total amount of money owed to a business
7. Adjusting entry
journal entries recorded to update general ledger accounts at the end of a fiscal period
8. Adjustments
an amount that is added to or subtracted from an account balance to bring the balance up to date
9. Asset
anything of value that is owned
10. Balance sheet
a financial statement that reports assets, liabilities, and owner's equity on a specific date
11. Bookkeeper
a person who keeps regular, concise, accurate records of business transactions by entering them in account books
12. Capital
the account used to summarize the owner's equity in a business
13. Chart of accounts
a list of accounts used by a business
14. Check
a business form ordering a bank to pay cash from a bank account
15. Chronological
arranged in or according to the order of time
16. Closing entry
journal entries used to prepare temporary accounts for a new fiscal period
17. Contra account
an account whose balance decreases another account's balance
18. Corporation
an organization with the legal rights of a person and which may be owned by many people
19. Double-entry accounting
the recording of debit and credit parts of a transaction
20. Drawing
an account showing the total assets taken out of the business by the owner
21. Entry-level jobs
the first jobs that individuals get
22. Equity
financial rights to the assets of a business
23. Ethical
conforming to accepted and established professional standards of conduct
24. Expenses
a decrease in owner's equity from the operation of a business
25. Financial statement
a report prepared to summarize the changes resulting from business transactions that occur during an accounting period
26. Fiscal period
the length of time for which a business summarizes and reports financial information
27. General journal
a journal with two amount columns in which all kinds of entries can be recorded
28. General ledger
a ledger that contains all accounts needed to prepare financial statements
29. General office clerk
may be in charge of a small cash fund, file accounting records, type accounting reports
30. Income
a gain measured in money that derives from capital or labor; also the amount of such gain received by an individual in a given period of time
31. Income statement
a financial statement showing the revenue and expenses for a fiscal period
32. Inventory
the amount of goods on hand
33. Journalizing
recording transactions in a journal
34. Liability
an amount owed by a business
35. Memorandum
a form on which a brief message is written describing a transaction
36. Merchandise
goods that a merchandising business purchases to sell
37. Partnership
a business in which two or more people combine their assets and skills
38. Petty cash
an amount of cash kept on hand and used for making small payments
39. Post-closing trial balance
a trial balance prepared after the closing entries are posted
40. Posting
transferring information from a journal entry to a ledger account
41. Proprietorship
a business owned by one person
42. Proving
determining that amounts are in agreement or in balance
43. Proving cash
determining that the amount of cash agrees with the accounting records
44. Public accounting firm
a business selling accounting services to the general public
45. Purchase
to gain possession by paying money or the equivalent
46. Receipt
a business form giving written acknowledgment for cash received
47. Reconciling
verifying that information on a bank statement and a checkbook are in agreement
48. Revenue
an increase in owner's equity resulting from the operation of a business
49. Special amount column
a journal amount column headed with an account title
50. Subsidiary ledger
a ledger that is summarized in a single general ledger account
51. Transaction
a business activity that changes assets, liabilities, or owner's equity
52. Trial balance
a proof of the equality of debits and credits in a general ledger
53. Vendor
a business from which merchandise is purchased or supplies or other assets are bought
54. Withdrawal
assets taken out of a business for the owner's personal use
55. Work sheet
a columnar accounting form used to summarize the general ledger information needed to prepare financial statements