Accounting I Chapters 1-8 Vocabulary Review

The amount in an account.

business ethics account balance debit

A record summarizing all the information pertaining to a single item in the accounting equation.

expense account receipt

The name given to an account.

chart of accounts liability account title

Planning, recording, analyzing, and interpreting financial information.

double-entry accounting memorandum accounting

An equation showing the relationship among assets, liabilities, and owner’s equity.

accounting equation normal balance chart of accounts

Organized summaries of a business’s financial activities.

transaction accounting records financial statements

A planned process for providing financial information that will be useful to management.

accounting system invoice memorandum

The account used to summarize the owner’s equity in a business.

capital asset T account

Anything of value that is owned.

liability asset owner’s equity

A decrease in owner’s equity resulting from the operation of a business.

expense withdrawals owner’s equity

The use of ethics in making business decisions.

business ethics normal balance journalizing

Financial rights to the assets of a business.

sales invoice sale on account equities

Financial reports that summarize the financial condition and operations of a business.

receipt financial statements journalizing

An amount owed by a business.

debit liability invoice

The amount remaining after the value of all liabilities is subtracted from the value of all assets.

special amount column normal balance credit balance

A business that performs an activity for a fee.

credit service business Non-profit organization

A business owned by one person.

proprietorship T account cooperation

An increase in owner’s equity resulting from the operation of a business.

journalizing revenue ethics

A sale for which cash will be received at a later date.

sale on account expense proving cash

A business activity that changes assets, liabilities, or owner’s equity.

withdrawals double-entry accounting transaction

Assets taken out of a business for the owner’s personal use.

financial statements withdrawals deposits

The principles of right and wrong that guide an individual in making decisions.

financial statements general amount column ethics

The side of the account that is increased.

normal balance credit balance debit balance

A list of accounts used by a business.

chart of accounts debit sales invoice

An amount recorded on the right side of a T account.

debit deposit credit

An amount recorded on the left side of a T account.

credit debit account balance

An accounting device used to analyze transactions.

special amount column T account source document

A business form ordering a bank to pay cash from a bank account.

deposit slip memo check

Determining that the amount of cash agrees with the accounting records.

proprietorship proving cash credit

A journal amount column that is not headed with an account title.

chart of accounts general amount column special amount column

The recording of debit and credit parts of a transaction.

double-entry accounting proving cash accounting

A form for recording transactions in chronological order.

checkbook source document journal

Recording transactions in a journal.

correcting journalizing double-entry accounting

A form on which a brief message is written describing a transaction.

memorandum invoice sales invoice

A journal amount column headed with an account title.

T-account normal balance special amount column

A business form giving written acknowledgement for cash received.

normal balance check receipt

A business paper from which information is obtained for a journal entry.

transaction source document memo

The number assigned to an account.

chart of accounts account number check number

An additional journal entry, used to correct an incorrect journal entry.

transaction general journal entry correcting entry

A ledger that contains all accounts needed to prepare financial statements.

general ledger general journal work sheet

Transferring information from a journal entry to a ledger account.

adjusting an entry posting proving cash

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.

bank statement deposit slip check

An endorsement consisting only of the endorser’s signature.

full endorsement blank endorsement special endorsement

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.

debit card birthday card gift card

A check that a bank refuses to pay.

dishonored check certified check paycheck

An amount of cash kept on hand and used for making small payments.

checking account balance petty cash piggy bank cash

A check with a future date on it.

postdated check dishonored check blank check

Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.

adjustments transactions closing entries

A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

worksheet balance sheet income statement

The length of time for which a business summarizes and reports financial information.

born on date accounting period fiscal period

A financial statement showing the revenue and expenses for a fiscal period.

post-closing trial balance general ledger income statement

The difference between total revenue and total expenses when total revenue is greater.

net loss net income neither

The difference between total revenue and total expenses when total expenses are greater.

net income net loss neither

A proof of the equality of debits and credits in a general ledger.

trial balance worksheet post-closing trial balance

A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.

general journal general ledger worksheet

Any persons or groups who will be affected by an action.

CPA’s stakeholders steakholders

The series of accounting activities included in recording financial information for a fiscal period.

fiscal period accounting cycle post-closing cycle

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

closing entries adjusting entries journal entries

Journal entries used to prepare temporary accounts for a new fiscal period.

closing entries transactions journal entries

Accounts used to accumulate information from one fiscal period to the next.

permanent accounts temporary accounts neither

Accounts used to accumulate information until it is transferred to the owner’s capital account.

closing entries temporary accounts permanent accounts

CORRECT!!!!

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