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25 terms

Tremblay Chapter 1 to 5 Vocabulary

STUDY
PLAY
Assets
anything of value that is owned by the business
Liabilities
an amount owed by the business, it's debt
Owner's Equity
the amount remaining after all liabilities are subtracted from assets
Accounting Equation
Assets = Liabilities + Owner's Equity
Revenue
transaction for the sale of goods or services results in an increase in owner's equity
Expense
a decrease in owner's equity resulting from oepration of a business
Withdrawals
assets taken out of a business for the owner's personal use
Debit
Left side
Credit
Right side
Source documents
check, sales invoice, receipt, cash register tape, memorandum
Proving cash
determining that the amount of cash agrees with the accounting records
Journalizing
recording transactions in a journal
Special amount column
journal amount column headed with an account title
General amount column
journal amount column that is not headed with an account title
General Ledger
a ledger that contains all accounts needed to prepare financial statements
Posting
transferring information from a journal to a ledger account
Blank Endorsement
Only requires the endorser's signature
Special Endorsement
Transfers ownership of a check to a new owner
Restrictive Endorsement
Further transfers of checks is not allowed
Dishonored Check
Bank refused to pay
EFT
computerized cash payments
Debit Card
bank card that automatically deducts the amount of a purchase from a checking account of the cardholder
Petty Cash
amount of cash kept on hand and used to make small payments
Service business
business that performs an activity for a fee
Proprietorship
business owned by one person