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Accounting Midterm
chapters 1-10
| Question | Answer |
|---|---|
| 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 |
Created by:
kunkle7807
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