| Flap 1 |
Flap 2 |
| business owned by one person |
proprietorship |
| financial rights to the assets of a business |
equities |
| an amount owed by a business |
liability |
| the amount remaining after the value of all liabilities is subtracted by the value of all assets |
owner's equity |
| account used to summarise the owner's equity in a business |
capital account |
| a financial statement that reports assets; liabilities; and owners equities on a specific date |
balance sheet |
| _______ is the language of business |
accounting |
| the relationship between assets; liabilities; & owners equity can be written as an_________. |
equation |
| the________ is the owner's equity account |
capital |
| an increase in owners equity resulting from the operation of a business |
revenue |
| a sale for which cash will be recieved at a later date |
sale on account |
| a decrease in owners equity resulting from the operation of a business |
expense |
| assets taken out of a business for the owners personal use |
withdrawals |
| a ________ may be prepared on anyday |
balance sheet |
| the side of an account that is increased |
normal balance side |
| an amount recorded on the left side |
debit |
| amount recorded on the right side |
credit |
| a list of accounts used by a business |
chart of accounts |
| the values of all things owned are on the account equation's_______________. |
left side |
| the balues of all equities or claims against the assets are on the equations's_______________. |
right side |
| an amount recorded on the left side of a t account is a _______. |
debit |
| an amount recorded on the right side of a t account is a ________. |
credit |
| the normal balance side of any asset account is the ________. |
debit side |
| normal balance side of any liability account________. |
credit |
| normal balance side of owner's capital account_______. |
credit side |
| debits must always =________. |
credits |
| normal balance side of any revenue account_________. |
credit side |
| normal balance side of any expense account________. |
debit side |
| normal balance side of owners drawing account________. |
debit side |
| preparing a source document for each transction in an application of the accounting concept__________. |
objective evidence |
| the account debited when cash is paid for supplies |
supplies |
| the source document for a payment of cash is a ______. |
check |
| a group of accounts |
ledger |
| a ledger that contains all accounts needed to prepare financial statements |
general ledger |
| the number assigned to an account |
account number |
| the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current |
file maitenance |
| writing the account title and heading of an account |
opening an account |
| transferring information from a journal entry to a ledger account |
posting |
| determing the amount of cash agrees with the balance of the cash account in the accounting records |
proving cash |
| a journal entry made to correct an error in the ledger |
correcting entry |
| expense accounts are arranged in __________. |
chronological order. |
| a bank account from which payments can be ordered by a depositor |
checking account |
| a signature or stamp on the back of a check; transferring ownership |
endorsement |
| an endorsement consisting of only the owner's signature |
blank endorsement |
| an endorsement indicating the new owner of a check |
special endorsement |
| an endorsement restricting further trasnser of a check's ownership |
restrictive endorsement |
| a check with a future date on it |
postdated check |
| a report of deposits; withdrawals; and bank balances sent to a depositor by a bank |
bank statement |
| a check that a bank refuses to pay |
dishonored check |
| a computerized cash payment system that uses electronic impulses to transfer funds |
electronic funds transfer |
| a form showing proof of a pretty cash payment |
petty cash slip |
| when a deposit is made to a bank account; the bank issues a _______. |
reciept |
| the length of time for which a business summarizes and reports financial information |
fiscal period |
| a columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
work sheet |
| a proof of the equality of debits and credits in a general ledger |
trial balance |
| changes recorded on a work sheet to update the general ledger accounts at the end of a fiscal period |
adjustments |
| a financial statement showing the revenue and expenses for a fiscal period |
income statement |
| the difference between total revenue and total expenses when total revenue is greater |
net income |
| the difference betewwn total revenue and total expenses when total expenses is greater |
net loss |
| journal entries recorded to update general ledger accounts at the end of a fiscal period |
adjusting entries |
| accounts used to accumulate information from one fiscal period to the next |
permanent accounts |
| accounts usred to accumulate information until it is transferred to the owner's capital account |
temporary accounts |
| journal entries used to prepare temporary accounts for a new fiscal period |
closing entries |
| a trial balance prepared after the closing entries are posted |
post closing trial balance |
| the series of accounting activiies included in recording financial information for a fiscal period |
accounting cycle |
| a business in which two or more persons combine their assets & skills |
partnership |
| a business that purchases and sells goods |
merchandising business |
| merchandising business that sells to those who use or consume the goods |
retail merchandising business |
| goods that a merchandising business buys to sell |
merchandise |
| a business that buys and resells merchandise to retail merchandising businesses |
wholesale merchandising business |
| journal used to record only one kind of transaction |
special journal |
| the amount added to the cost of merchandise to establish a selling price |
markup |
| a business from which merchandise is purchased or supplies or other assets are bought |
vendor |
| special journal used only to record purchases of merchandise on account |
purchases journal |
| journal amount column headed with a title |
special amount column |
| an invoice used as a rouce document for recording a purchase on account transaction |
purchase invoice |
| an agreement between a buyer & a seller in terms of payment for merchandise |
terms of sale |
| a journal amount column that is not headed with an account title |
general amount column |
