Lord - Upper Cape Tech School Class- ifications Terms MISC Accounting Cycle End of Period
Anything of value that is owned or controlled by an individual or business organization is called a/an ______.
What is ASSET
The owner's claims to the total assets of the business are called
What is OWNER’S EQUITY
The revenue, expense, and withdrawals accounts are called
What is TEMPORARY CAPITAL ACCOUNTS
When an owner takes cash or other assets from the business for personal use
What is WITHDRAWAL
accounts whose balances are carried from one accounting period to the next.
What is PERMANENT ACCOUNTS
A business with a single owner is a (n) ______.
What is SOLE PROPRIETORSHIP
A financial recordkeeping system in which each business transaction affects at least two accounts
What is DOUBLE-ENTRY ACCOUNTING
A paper that serves as evidence that a transaction occurred
What ARE SOURCE DOCUMENTS
The process of determining any differences between a bank statement's balance and the checkbook balance.
What is RECONCILING THE BANK STATEMENT
A record showing the increases or decreases, and balance, of a specific asset, liability, or equity.
What is an ACCOUNT
The total amount of money to be received in the future for goods or services sold on credit
What are ACCOUNTS RECEIVABLE
The total amount of money owed to a business's creditors
What is ACCOUNTS PAYABLE
The amount entered on the left side of the T account
What is the DEBIT
The increase side of an account is the same side as its
What is BALANCE SIDE
The account in the general ledger used for summarizing the revenue and expenses for a fiscal period
What is INCOME SUMMARY
States that assets of the business equal the liabilities plus the owner's equity.
What is BASIC ACCOUNTING EQUATION
The process of recording business transactions in a journal
What is JOURNALIZING
The full range of accounting activities a business must complete to keep its accounting records in an orderly fashion
What is ACCOUNTING CYCLE
Journal entries made to reduce to zero the balances in the temporary capital accounts and then transfer the net income or loss to the capital account
What are CLOSING ENTRIES
Prepared to make sure the total debits are equal to the total credits in the general ledger after the closing entries have been posted.
What is POST-CLOSING TRIAL BALANCE
Reports a business's net income or net loss for a fiscal period.
What is INCOME STATEMENT
A financial statement that reports the final balances in all the asset, liability, and owner's equity accounts at the end of the fiscal period.
What is BALANCE SHEET
If the total of the credit column of the Income Statement section of the worksheet is less than the debit column
What is NET LOSS
A formula summarizing the effects on the capital account
What is Capital–Drawing (+net income or – net loss)
The permanent general ledger accounts are extended to the ___ of the work sheet.
What is BALANCE SHEET SECTION
Wild Card!