20 terms

Accounting I (Unit 2A) Vocabulary Words

Vocabulary words for Unit 2 of Accounting I
A record summarizing all the information pertaining to a single item in the accounting equation.
Account Balance
The amount in an account.
Accounting Cycle
The series of accounting activities included in recording financial information for fiscal period.
Accounting Equation
An equation showing the relationship among assets, liabilities, and owner's equity.
Accounting Period Cycle Concept
Changes in financial information are reported for a specific period of time in the form of financial statements.
Accounting Record
An organized summary of a business's financial activities.
Accounting System
A planned process for providing financial information that will be useful to management.
Account Number
The number assigned to an account
Account Title
The name given to an account.
Adequate Disclosure Concept
Financial statements that contain all information necessary to understand a business's financial condition.
Adjusting Entries
Journal entries recorded to update general ledger accounts at the end of the fiscal period.
Changes recorded on a work sheet to update general ledger accounts at the end of the fiscal period.
Anything of value that is owned
Business Entity Conept
Financial information is recorded and reported separately from the owner's personal financial information.
The account used to summarize the owner's equity in a business.
Closing entries
Jounal entries used to prepare temporary accounts for a new fiscal period.
Consistent reporting concept
The same accounting procedures are followed in the same way on each accounting period.
Correcting entry
A journal entry made to correct an error in a ledger.
Financial rights to the assets of a business.
File maintenance
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.