Worsham Accounting Word Scramble
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Question | Answer |
Account | a device for recording the changes in the fundamental acounting elements |
Account Balance | the difference betweeen the total debits and the total credits in an account |
Accountant | one who is concerned with the desing of the system of records, the preparation of reports based upon the recorded data, and the interpretation of the reports |
Accounting | a language of business employed to communicate financial information based upon analysing, recording, classification, summarization, reporting, and interpretation of finacial data |
Accounting Cycle | the process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting and closing entries, and preparing a post-closing trial balance, which is repeated each fiscal period |
Accounting Equation | Assets = Liabilities + Owner's Equity |
Account Payable | an unwritten promise to pay creditors for property such as merchandise, supplies or equipment purchased on credit, or for services recieved on credit |
Account Receivable | an unwritten promise by a customer to pay at a later date for goods sold or services rendered |
AccountsReceivable Turnover | measures how many times per year receivables are collected |
Calculation for Accounts Receivable Turnover | net credit sales devided by Average Accounts Receivagble |
Accrual Accounting | recording in each fiscal period applicable expenses, whether paid or not, and income earned |
Accrued Expense | an expense incurred in operatinga business during an accounting period but not yet paid |
Accrued Income | income actually earned during an accounting period but which will not be received until a future period |
Acid Test Ratio/Quick Ratio | quick assets divided by current liabilities |
Activity Anaysis | measures how efficiently a firm is utilizing its assets |
Adjused Trial Balance | a trial balance taken after adjusting entries have been recorded |
Adjusting Entries | entries made at the conclusion of a fiscal period to bring accounts up to date |
Age of Accounts Receivable | measures the average time requiered to collect recievables (365 days divided by Accounts receivable Turnover) |
Age of Inventory | measures the average time required to sell inventory (365 days divided by Inventory Turnover) |
Allowance for Doubtful Accounts (allowance for Bad Debts) | a contra acount utilized to accumulate totals against accounts receivable |
Analyzing | detemining the fundamental significance of business transactions to that finacial information may be properly processed |
Assets | property of monetary value owned by a business |
Bad Debts Expense | accounts receivable that are uncollectible |
Balance Sheet | a formal finacial statement illustrating the assets, liabilities, and owner's equity of a business as of a specific date |
Bank Draft | a check drawn by one bak on another bank in which it has funds on deposit |
Bank Statement Reonciliation | th eprocess by which the depositer verifies agreement between his chebook balance and the bank statement balance |
Bank Statement | an itemized listing prepared by the bank of additions to and sbutractions from a depositor's account |
Cancelled Check | a check that has been paid by the ank and returned to the dawer for recordkeeping |
Capital | the amount by which the total assets exceed the total liabilities of a business |
Cash | coins, currency, checks |
Cash Discounts | discounts from quoted pricesas an inducement for promt payment of invoices |
Cash Payments Journal | a book of original entry in which only cash disbursements are recorded |
Cash Receipts Journal | a book of original entries in which only cash receipts are recorded |
Cashires Check | a check drawn by a bank on its own funds and signed by an officer of the bank |
Certified Check | a check that carries the quarantee of the bank that sufficient funds are avaliable to pay the check when it is presented |
a list of all the acount titles and the account numbers assinged to them | |
Check | a piece of commercial paper drawn on funds in a bank account and payable on demand |
Chect stub | a form on which information is recorded by the drawer of a check concerning the check drawn |
Chronological | in accounting, to record in order of time |
Classifing | the sorting of the many business transactions in a norderly and systematic manner |
Closing Entries | entries made at the end of each reporting period to transfer the balances of the temporary owner's equity accounts to the permanent ower's equity account |
Combination Journal | a book of original enry which combines into one journal the features of the two-column general journal and a special journal |
Compound Journal Entry | an accounting entry that involves more than two accounts |
Contra Account | an account desgned to accumulate totals to offset a realated account |
Credit (Cr) | |
Credit Balance | a condidion that occurs when the total of the credits in an account is larger than the total of he debits in that account |
Credit Memorandum | a source doucment that granst credit to a buyer for purchase return or purchase allowance |
Creditor | a business or individual to whom a debt is owed |
Cross Referencing | a process of entering the journal page number in the ledger and the ledger account number in the journal |
Current Assets | cash or other assets that will be converted into cash or consumed within one year |
Current Asset Ratio | current assets divided by current liabiliies |
Current Liabilities | debts of a business that are gerally paid within one year |
Current Ratio | Current assets divided by current liabilities |
Debit (Dr) | the left side of a standard acount |
Debit balance | a condition that occurs when the total of the debits in an account is larger than the total of the credits in that account |
Debit Memorandum | items the bank deducts from the account balance |
Debtor | the business or individual who owes debt |
Deposits in Transi | deposits that have been made and aded to depositor's checkbook, but which have not yet been listed on the bank statement |
Deposit Ticket/Slip | a bank for m which lists thos cash items and individual checks to be deposited |
Deprecation | th eloss in value of a fixed asset due to wear and tear and the passage of time |
Depreication Expense | that protion of the original cost of a fixed asset that is assinged as an expense to the reporting perid expercted to benefit from its use |
Disbursement | a payment |
Discount Period | a apecific number of days during which a discount is available if the account is paid |
Dishonored Check | a check not paid by the bank when prperly presented |
Double Entry Accounting | a process of recording equal debits and credits for a single business transaction |
Drawee | a person or concern, usually a bank, that has been ordered to make a payment of a check or draft |
Drawer | a person (depositor) who sings a check, ordering a payment to be made |
Drawing account | a separate owner's equity account in which withdrawals of cash or other assets by the owener for personal use are recorded |
Employee | one who is under the control and direction of an employer with regard to the performance of employment |
Endorsement | th esignature of the payee or other holder placed on the back of a check or other negotiable instrument |
Endorser | a person or company whose name is written on the back of a cheak |
Expense | a drecrease in assets, other than withdrawas by the woner, which result from efforts to produce revenues |
Face of Note | the principal sum the maker of a note promises to pay |
Federal Income Tax Withholding | the amount that an employer must witholdfrom an employee's pay for income tax purposes |
Federal Insurance Contributions Act | a federal act wich requires most employers and emploees to pay taxes to support the Federal Social security program |
Federal Unemployment Tax Act | a federal act imposed upon each employer for the purpose of financing the administratin costs of the federal and the state unemployment compensation programs |
F.I.C.A. | Federal Unemployment Tax Act |
Genral journal | a book of original entry in which business transactions are recorded in chronological order |
General Ledger | the book of accounts |
Gross Earnings/Gross Pay | income before any deductions have been made |
Gross Profit/Gross Margin | net sales minus the cost of goods sold |
Gross PRofit Percentage | gross profit divided by net sales |
IN Balance | a condition in which the total of the debits and the total of the credits are equal in an account |
Income/Revenue | an inflow of assets as a result of selling a prodct or provding a servie |
INcome Statement Commmon-Size Statements/Percentage Method | express the major items in th eINcome Statemnt as a precent of Net Sales and compare with previous fiscal periods |
Income Statement Comparative Forms | record the income statement data for two or more Comparable periods of the same form so that the infomration can be readily compared |
Income Statement | a formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period |
Income Tax | a tax levied on the earnings of individuals and businesses by federal, state, and local governments |
Independent Contractor | any person who agrees to perfomr a service for a fee and who is not subject to the ocntrol of those for whom th e service is perfomred |
Information Processor | "bookkeeper" |
Intangible assets | those assets that cannot be touched or grasped |
Interest | money paid for the use of money |
Inerpreting | explaining th esignificant events or developments that occur, usually taking the form a analysis and comparisons |
Inventory Turnover | the number of times the avera inventory has been sold or used up during a period |
Invoice | a source document showing quantity, description, prices of items, total amount of purchase and the terms of payment |
Journalizing | the process of recording business transactions in a journal |
Ledger | a book of accounts |
Liabilities | any debts that a business owes |
Liquidity Analysis | |
Long-Term Assets | Fixed assets |
Maker | an individual who promises to pay on a promissory not |
Maturity date | the date on which payment is due on a promissary note |
Merchandise | goods purchased for resale at a profit |
Mortgage Payable | a long-term liability; written prmoise that pledges rea property as security for payment of a debt |
N.S.F. | Not sufficient funds |
Net income | the difference between gross profit and expenses when gross profit is larger |
Net loss | the difference between gross profit and expenses when expenses are larger |
Net pay | gross pay less paroll deductions |
Net purchases | purchases minus purchse returns and allowances minus purchase discounts |
Net sales | sales minus sales returns and allowances minus discount |
Net worth | capital |
Not payable | a written promise to pay a creditor a certain amount in the future |
Note receivable | a written prmise of a cusomter to pay the business a sum of mone at a future date |
Operateing Expenses | expenses in curred in the nomral operation of a business |
Operating Staement | Income statement |
Original cost basis | the amount originally paid for a depreciable asset |
Other Expenses | expenses incureed that are not the direct result of regular trading activities of a business |
Other Income | income recieved that is not the direct result of reqular trading activities of a business |
Outstanding Checks | checks that have been drawn and subtracted from the depositor's checkbook but which have not yet been presented to the bank for payment |
over draft | the issuance of a check without sufficient funds in the account when it is presented for payment |
Owner's Equity | the amount by which the total assets exceed the total liabilities of a busness |
Payee | a person or comapny who will receive payment on a promissary note, check, draft or money order |
Petty Cash Fund | a fund of currency and coin established for the payment of small amounts of money |
Petty Cash voucher | a form used to reflect payments from the petty cash fund |
Post-closing Trial Balance | a work paper prepared after all the woner's temporary equity accounts have been closed and all permanent accounts have been baanced and ruled proving the equality of the debits and credits |
Postdated Check | a check dated subsequent to its dae of issuance |
Posting | thransferal of data from the journal to the ledger |
Prepaid Expenses | items that are soncidered to be assets when acquired, but which will become expenses when sonsumed or expired |
Pricipal | the face value of a promissory note upon which interest is computed |
Profit Margin | net income divided by net sales |
Profitability Analysis | provides evidence concerning the earnings potential of a company and how effectively the firm is being managed |
Promissory note | written order by a buyer for erchandise or other property sepcified in the purshase requisition |
Proving the Journal | a process wich examines each page of a journal, confirming that the debit entries equal the credit entries on each page |
Proving Cash | the process of detemining wheterh the amount of cahs, both on hand and in the bank, is the same as the which is indicated in the accounting records |
Purchase Invoice | a source document prepared by the seller lising the items shipped, their cost and the method of shipment |
Purchase Order | a written order by a buyer for mercandise or other property specified in the purchase reuisition |
Purchase Requisition | a form used to request the responsible person or department to purchase merchandise or other property |
Purchases | a temporary owner's equity account used to record the buying of merchandise for resale |
Purchases Discount | a temporary owner's equity conra acount used to record diiscounts taken on inventory purchases; the amount of any disounts granted by suppliers to enourage prompt payment of their invoices |
Purchases journal | a book of original entry used to record purchases of merchandise on credit only |
Purchases Returns and allowances | a temporary owner's equity contra account utilized to record the return of merchandise to the manufactuere or supplier as the resuld of material defects in workamanship and/or inferior product quality |
Quarterly | a three-month period |
Quick Assets | cash, marketable securities, accounts, and notes receivable |
Rate | the annual precentage rate used to compute interes |
Recording | the committing of business transaction and the events surrounding such into wrigin |
Resricitve ednorsement | an enorsement that limits the use of unds to the purpose stated |
Retail Sales Tax | a tax imposed on tanigible personal property sold at retail |
Salary | genrally considered to be compensation formanagerial or admisistrative services, experessed in terms of a month or yhear |
Sales | a temporary owner's equity account used to record the earning of revenue |
Sales discount | temporary owner's equit contra account uded to record dicounts given to customers as an incentive for promt payment |
Sale Invoice | a source document prepared by the seller that lists the itmes shipped thei rcost and the meothod of shipment |
a book of original entry used for the recordin of sales of merchandise on credit only | |
Sales Returns and Alowances | a temporary equity conra account used to record credit given to a customer for shortages or damaged goods |
Alvage Value | extimated value of a fixed asset at the endo fits useful life |
Source Document | first record of a business transaction |
Special Journal | a special journal designed to accumulate data about only one kind of business trasaction |
Staement of account | a report sent to each customer, usually at the end of themonth, which indicates th s |
Statement of Financial Condition | Balance sheet |
Statement of Owner's Equity | a formal financial statement which summarizes all of the changes in owner's equity during a specified period of time |
Straight Line depriciation | method in which the depreiciable cost basis of an asset is apportioned equally over its estimated useful life expressed in terms of months or years |
Stop Payment Order | an order by a depositor requesting a bank not to pay on a check previously issued |
Summarizing | bringing accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements |
Supplies | a type of asset hat will be consumed as it is used |
T-account | a skeleton form of an account used for instrutional puposed |
tak home pay | the amount of pay after deductions have been subtracted |
Tangible assets | those assets hat can be appraised by balue or seen or touched |
Temporary Owner's Equity Accounts | accounts utilized to accumulate income, expenses and owner's wih rawals for one accounting period only |
Time/term of NOte | period of itme from the date of the note to thematurity date |
Transaction Analysis | the effect of transactions on the accounting elements |
Transaction | any activity of a business enterprise that involves the exchange of values |
Transposition Error | an amount writen with the diits in incorrect order |
Rial Balance | a work paper proving the equality of the debit and credit balances in the ledger |
U.C.F. | Uncollectible Funds |
Useful Life | estimated life of a fixed asset |
W-2 Form | wage and tax staement; report furnished by the employer for each employee indicating gross earnings and deuctions fo rincome and F.I.C.A. taxes |
W-4 Form | employee' Wiholding Allowance Certificate |
Wage | form of ocmpensatino usually for skilled and unskilled labor, expressed in terms of hours, weeks or pieces completed |
Worksheet | expanded trial balance utilized for computing, classifying, and sorting account balances before preparing the formal finalncial statements |
Created by:
Hocker
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