Cherokee 1 lvl 2 study guide
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| Flap 2 |
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| Revenue |
An increase in owners Equity resulting from the operation of a buisness |
| Sale On Account |
sale for which cash will be recieved at a later date |
| Realization Of Revenue |
applies when revenue is recorded at the time goods or services are sold |
| Expense |
A decrease in Owners Equity resulting from the operation of a buisness |
| Withdrawls |
Assets taken out of an account for the owners personal use |
| Accounting equation |
Assets = liabalites + Owners Equity |
| T Account |
an accounting device used to analyze transactions |
| Normal Balance |
the side of an account that is increased |
| Debit |
An amount recorded on the left side |
| Credit |
An amount recorded on the right side |
| Chart Of Accounts |
A list of accounts used by a buisness |
| Journal |
A form for recording transactions in chronological order |
| Journalizing |
Recording transactions in a journal. Entry- Information for each transaction recorded in a journal |
| General Journal |
a journal with two amount columns in which all kinds of entries can be recorded |
| Double-Entry Accounting |
recording of debit and credit parts of a transaction |
| Source Document |
A buisness peper from which information is obtained for a journal entry |
| Objective Evidence |
applied when a source document is prepared for each transaction |
| Check |
A buisness form ordering a bank to pay cash from a bank account |
| Invoice |
form describing the goods or services sold, the quantity, and the price |
| Sales Invoice |
invoice used as a source document for recording a sale on account |
| Recipt |
A business form giving written acknowledgement for cash recieved |
| Memorandum |
form on which a brief message describing a transaction |
| Ledger |
A group of accounts |
| General Ledger |
contains all accounts needed to prepare financial statements |
| Account Number |
The number given to an account |
| File Maintenance |
the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current |
| Opening an account |
writing an account title and number on the heading of an account |
| Posting |
Transfering from a journal entry to a ledger account |
| Bank Statement |
A report of Deposits, withdrawls, and bank balances sent to a depositor by a bank |
| Dishonored Check |
a check that a bank refuses to pay |
| EFT |
computerized cash payments system that uses electronic impulses to transfer funds |
| Debit Card |
card that automatically deducts the amount of the purchase from the checking account of the card holder |
| Petty Cash |
amount of cash kept on hand used for making small cash payments |
| Petty Cash Slip |
a form showing proof of a petty cash payment. |
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