click below
click below
Normal Size Small Size show me how
Accounting-2
Arkansas Unit 2: Basic Accounting Cycle - Service Business
Question | Answer |
---|---|
Account | A record summarizing all the information pertaining to a single item in the accounting equation. |
Account Balance | The amount in an account. |
Account Number | The number assigned to an account. |
Account Title | The name given to an account. |
Accounting Cycle | The series of accounting activities included in recording financial information for a fiscal period. |
Accounting Equation | An equation showing the relationship among assets, liabilities, and owner's equity. |
Accounting Period Cycle Concept | Changes in financial information are reported for a specific period of time in the form of financial statments. |
Accounting Record | An organized summary of a business's financial activities. |
Accounting System | A planned process for providing financial information that will be useful to management. |
Adequate Disclosure Concept | Financial statements that contain all information necessary to understand a business's financial condition. |
Adjusting Entries | Journal entries recroded to update general ledger accounts at the end of a fiscal period. |
Adjustments | Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period. |
Assets | Anything of value that is owned. |
Balance Sheet | A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
Business Entity Concept | Financial information is recorded and reported separately from the owner's person financial information. |
Capital | The account used to summarize the owner's equity in a business. |
Chart of Accounts | A list of accounts uesd by a business. |
Closing Entries | Journal entreis used to prepare temporary accounts for a new fiscal period. |
Consistent Reporting Concept | The same accounting procedures are follwed in the same way in each accounting period. |
Correcting Entry | A journal entry made to correct and error in a ledger. |
Credit | An entry to the right side of a T account. |
Debit | An amount entered on the left side of a T account. |
Equitiets | Financial rights to the assets of a business. |
File Maintenance | The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. |
Fiscal Period | The length of time for which a business summarizes and reports financial information. |
General Ledger | A ledger that contains all accounts needed to prepare financial statements. |
Going Concern Concept | Financial statments are prepared with the expectation that a business will remain in operation indefinitely. |
Income Statement | A financial statement showing the revenue and total expenses for a fiscal period. |
Ledger | A group of accounts. |
Liability | An amount owned by a business. |
Matching Expenses with Revenue Concept | Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting. period |
Net Income | The difference between total revenue and total expenses when total revenue is greater. |
Net Loss | The difference between total revenue and total expenses when total expenses are greater. |
Objective Evidence Concept | A source document is prepared for each transaction. |
Opening an Account | Writing the account title and number on the heading of an account. |
Owner's Equity | The amount remaining after the value of all liabilities subtracted from the value of all assets. |
Permanent Accounts | Accounts used to accumulate information from one fiscal period to the next. |
Post-Closing Trial Balance | A trial balance prepared after the closing entries are posted. |
Posting | Transferring information from a journal entry to a ledger account. |
Proprietorship | A business owned by one person. |
Temporary Accounts | Accounts used to accumulate information until it is transferred to the owner's capital account. |
Transaction | A business activity that changes assets, liabilities, or owner's equity. |
Trial Balance | A proof of the equality of debits and credits in a general ledger. |
Work Sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. |