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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. |
Created by:
michrob15
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