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Accounting Vocab- Term 1

Terms in this set (23)

General Amount Column
A journal amount column that is not headed with an account title
Retail Merchandise Business
A merchandising business that sells to those who use or consume the goods
Wholesale Merchandising Business
A business that buys and resells merchandise primarily to other merchandising businesses
Asset
anything of value that is owned
Account Number
number assigned to an account
Net Loss
The difference between total revenue and total expenses when total expenses are greater
Controlling Account
An account in a general ledger that summarizes all accounts in a subsidiary ledger
Corporation
An organization with the legal rights of a person which many persons or other corporations may own
Purchase Order
a form requesting that that a vendor sell merchandise to a business
Special Journal
a journal used to record only one kind of transaction
Personal Net Worth
The difference between personal assets and personal liabilities
Liability
an amount owed
Schedule of Accounts Payable
a listing of vendor accountants, account balances, and the total amount due to all vendors.
Owner's Equity
The amount remaining after the value of all liabilities is subtracted from the value of all assets
Sale on Account
a sale for which payment will be received at a later date
Checking Account
a bank account from which payments can be ordered by a depositor
Cash Discount
a deduction that a vendor allows on an invoice amount to courage prompt payment
Stockholder
the owner of one or more shares of stock
Withdrawal
Assets taken from the business for the owner's personal use
Net Income
The difference between total revenue and total expenses when total revenue is greater
Posting
Transferring information from a journal entry to a ledger account
Perpetual Inventory
an inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise
Accounting Equation
An equation showing the relationship among assets, liabilities, and owner's equity
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