FBLA Accounting I Word Scramble

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Term	Definition
Return on investment	The ration of the money earned on an investment
Real property	Land and anything attached to land
Personal property	All property not classified as real property
Assessed Value	The value of an asset determined by tax authorities for the purpose of calculating taxes.
Plant asset record	an accounting form on which a business records information about each plant asset
Gain	An increase in equity resulting from activity other than selling goods or services
Gain on plant assets	An increase in equity that results when a plant asset is sold for more than book value
Loss	A decrease in equity resulting from activity other than selling goods or services
Loss on plant assets	A decrease in equity that results when a plant asset is sold for less than book value
Accelerated depreciation	Any method of depreciation which records greater depreciation expense in the early years and less depreciation expense in the later years
Declining-balance method of depreciation	A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.
Double-declining balance method of depreciation	A declining-balance rate that is two times the straight-line rate.
Intangible Asset	An asset that does not have physical substance.
Amortization	The spreading of the cost of an intangible asset over its useful life.
Payroll	list of a business's employees and the payment due to each employee for a specific pay period
Pay period	amount of time for which an employee is paid
Payroll clerk	a person who is responsible for preparing the payroll
Gross earnings	total amount of money earned by an employee in a pay period
Salary	fixed amount of money paid to an employee for each pay period
wage	amount of money paid to an employee at a specified rate per hour worked
time card	record of the time an employee arrives at work each time, the time the employee leaves, and the total number of hours worked each day
electronic badge readers	computer technology where each employee's time card has a magnetic strip on which is encoded certain employee information
piece rate	amount paid for each piece produced in a factory or manufacturing plant
commission	amount paid to an employee based on a percentage of the employee's salary
overtime rate	set by the Fair Labor Standards Act, is 1 and 1/2 times the employee's regular rate
deduction	the amount that is subtracted from gross earnings
exemption	an allowance claimed by a tax-person that reduces the amount of taxes that must be paid
payroll register	form that summarizes information about an employees' earnings for each pay period
net pay	amount of money left after all deductions are subtracted from gross earnings
direct deposit	the employee's net pay is deposited in her or his personal bank account
employee's earning record	where the individual payroll record for each employee is recorded
accumulated earnings	each employee's year to date gross earnings
unemployment taxes	based on a percentage of their employees' gross earnings and are collected to provide funds for workers who are temporarily out of work
federal tax deposit coupon	(Form 8109) prepared and sent with the check to show the amount of taxes being sent to the federal government
form 941	the employer's quarterly federal tax return
form w-2	summarizes an employee's earnings and tax deductions for the previous calendar year
form w-3	summarizes the information contained on the employee's form w-2
form 940	an employer's annual unemployment tax return
internal controls	those steps the business takes to protect cash and other assets
external controls	those controls provided outside the business (ex. verifying the accuracy of a signature)
checking account	a bank account that allows a bank customer to deposit cash and to write checks against the account balance
check	a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check
depositor	person or business that has cash on deposit in a bank
signature card	contains the signatures of the persons authorized to write checks on the bank account
deposit slip	a bank form on which the currency and checks to be deposited are listed (deposit ticket)
endorsement	authorized signature that is written or stamped on the back of a check
restrictive endorsement	restricts or limits how a check may be handled
drawer	the person who signs a check
drawee	bank on which the check is written
voiding a check	writing the words void in large letters across the top of a check
bank statement	itemized record of all the transactions occurring in a depositor's account over a given period, usually a month
canceled check	returned checks that are stamped and marked with the word paid and the date of the payment
reconciling the bank statement	the process of determining any differences between the balances shown on the bank statement and the checkbook balances
outstanding checks	checks that have been written but not deposited
outstanding deposits	deposits that have been made and recorded in the checkbook but do not appear on the bank statement
bank service charge	fee charged by the bank for maintaining bank records and for processing bank statement items for the depositor
stop payment order	demand by the depositor that the bank not honor a certain check
NSF check	one returned by the bank because there are not sufficient funds in the drawer's checking account to cover the amount of the check
electronic funds transfer system	enables banks to transfer funds from the account of one depositor to the account of another quickly and accurately without the immediate exchange of checks
merchandising business	buys goods such as books, clothing or furniture and then sells those goods for profit
retailer	business that sells to the final user
wholesaler	business that sells to the retailer
merchandise	the goods bought for resale to customers
inventory	the items of merchandise the business has in stock
sale on account	the sale of goods that will be paid for later
charge customer	the customer to whom a sale on account is made
credit cards	entitles a charge customer to charge merchandise
sales slip	form that lists the details of a sale: the date, the name of the customer, and the description, quantity, price
sales tax	tax on the retail sale of goods and service
credit terms	set out the time allowed for payment (total amount of sale/amount of time)
special journals	multi-column journals that have columns reserved for the recording of specific types of transactions
sales journal	special journal used to record only the sale of merchandise on account
accounts receivable subsidiary ledger	separate ledger that contains accounts for all charge customers
subsidiary ledger	ledger, or book, that is summarized in a controlling account in the general ledger
controlling account	balance must equal the total of all the account balances in the subsidiary ledger
footing	column total written in small pencil figures
adjusting entries	Journal entries recorded to update general ledger accounts at the end of a fiscal period.
permanent accounts	accounts used to accumulate information from one fiscal period to the next.
temporary accounts	Accounts used to accumulate information until it is transferred to the owner's capital account.
closing entries	journal entries used to prepare temporary accounts for a new fiscal period.
post-closing trial balance	A trial balance prepared after the closing entries are posted
accounting cycle	The serious of accounting activities included in recording financial information for a fiscal period
stakeholders	individuals or groups who have an interest in and are affected by the actions of an organization
component percentage	The percentage relationship between one financial statement item and the total that includes that item.
fiscal period	The length of time for which a business summarizes and reports financial information.
work sheet	A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
trial balance	A proof of the equality of debits and credits in a general ledger.
adjustments	Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.
balance sheet	A financial statement that reports assets, liabilities, and owner's equity on a specific date.
income statement	A financial statement showing the revenue and expenses for a fiscal 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.
code of conduct	A statement that guides the ethical behavior of a company and its employees.
checking account	A bank account from which payments can be ordered by a depositor
endorsement	A signature or stamp on the back of a check transferring ownership
blank endorsement	An endorsement consisting only of the endorser's signature.
special endorsement	An endorsement indicating a new owner of a check.
restrictive endorsement	An endorsement restricting further transfer of a check's ownership.
postdated check	A check with a future date on it.
bank statement	A report of deposits, withdrawals, and bank balance sent to a depositor by a bank
dishonored check	A check that a bank refuses to pay.
electronic funds transfer	A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
debit card	A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
petty cash	An amount of cash kept on hand and used for making small payments
petty cash slip	A form showing proof of a petty cash payment.
ledger	a group of accounts
general ledger	A ledger that contains all accounts needed to prepare financial statements
account number	The number assigned 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	Transferring information from a journal entry to a ledger account.
journal	A form for recording transactions in chronological order
journalizing	Recording transactions in a journal.
special amount column	A journal amount column headed with an account title
general amount column	A journal amount column that is not headed with an account title.
entry	Information for each transaction recorded in a journal
double-entry accounting	The recording of debit and credit parts of a transaction
source document	A business paper from which information is obtained for a journal entry
check	a business form ordering a bank to pay cash from a bank account
invoice	A form describing the goods or services sold, the quantity, and the price
sales invoice	An invoice used as a source document for recording a sale on account
receipt	A business form giving written acknowledgement for cash received
memorandum	A form on which a brief message is written describing a transaction
proving cash	Determining that the amount of cash agrees with the accounting records.
T account	An accounting device used to analyze transactions
debit	An amount recorded on the left side of a T Account
credit	An amount recorded on the right side of a T account
normal balance	The side of the account that is increased.
chart of accounts (COA)	A list of accounts used by a business
accounting	Planning, recording, analyzing, and interpreting financial information.
accounting system	A planned process for providing financial information that will be useful to management.
accounting records	Organized summaries of a business's financial activities.
service business	A business that performs an activity for a fee.
proprietorship	A business owned by one person.
financial statements	Financial reports that summarize the financial condition and operations of a business.
asset	anything of value that is owned
equities	Financial rights to the assets of a business.
liability	an amount owed by a business
owner's equity	The amount remaining after the value of all liabilities is subtracted from the value of all assets.
accounting equation	An equation showing the relationship among assets, liabilities, and owner's equity, Assets = Liabilities + Owner's Equity
ethics	the principles of right and wrong that guide an individual in making decisions
business ethics	the use of ethics in making business decisions.
transaction	A business activity that changes assets, liabilities, or owner's equity.
account	A record summarizing all the information pertaining to a single item in the accounting equation
account title	The name given to an account.
account balance	The amount in an account
capital	the account used to summarize the owner's equity in a business
revenue	an increase in owner's equity resulting from the operation of a business
sale on account	A sale for which cash will be received at a later date
expense	a decrease in owner's equity resulting from the operation of a business Expense a decrease in owner's equity resulting from the operation of a business
withdrawals	Assets taken out of a business for the owner's personal use.
assets	economic resources owned by a company that are expected to benefit future business periods.
account	balance sheet with assets on the left and owners equity and liabilities on the right is what form
FIFO	during inflation _____ gives the highest net income (lowest cost of goods sold and highest merchandise available for sale)
LIFO	income statement approach
going concern	business will continue on to carry commitments and obligations
business entity	personal accounts of owner are separate from business
historical costs	original cost of plant asset
debit balance	what type of balance on the trial balance does merchandise inventory have at the beginning of a fiscal period on worksheet
supplies in the debit column of the trial balance column of the worksheet	amount of supplies available during the period
withholdings	wage payroll period marital status and allowances
info for employee's FICA	wage year to date earnings FICA rates
estimate of useful life is based on	prior experience
realization of revenue	revenue earned
total employee deductions	fica tax income tax
reversing accrued interest expense	interest expense gets credited
employee social security	total earnings accumulated earnings social security tax rate and social security tax base
objective evidence	accounting entries based on facts
conservatism	accounting for a business is fair and reasonable
time period	use fiscal periods for accounting
cost principle	purchases recorded at cost
consistency	use same methods period to period and using the same accounting procedure between periods
full disclosure	report full information that gives full report
materiality	use GAAP principles when accounting
The form that accompanies the payment of taxes to the federal government is a	940 form
The form that contains information necessary to determine the employee's net earnings is a W-3 The form that contains information necessary to determine the employee's net earnings is a	W-3
The form that summarizes the information reported on each employee's report of income and taxes is a/an __________.	W-4
The form used by the employer to report his/her annual unemployment tax is a	W-2
The purchase of a delivery van for cash would __________	increase the total debits of the trial balance
revenue and decrease capital	Performing carpet cleaning services on account would increase
The collection of cash from a charge customer would	increase net income and capital
When reconciling the bank statement, an NSF check for $480 is included. The entry to record this reconciling item would include a __________.	credit cash
FICA tax	employer and employee both pay
on each journal page	the year and month are written
a business has ___ types of entities	2
use blank endorsement	if sending check through email
even if a general account has a balance of zero, it is	written on a trial balance
Medicare ___ funded under social security law	is
lost check with blank endorsement can be cashed by	anyone who has the check
addition error	if trial balance doesn't equal by 1
transposition slide error	transposition slide error if trial balance doesn't equal and the difference is divisible by 9 there was probably a
Jan 31 of the next year	Employers are required to furnish each employee an annual statement of earnings and withholdings before
balance is written in the item column	when opening a new page in the accounts receivable ledger
debit memo	shows the price deduction taken by a customer for a return and allowance
debit side	what is the normal balance for the dividends account
federal income tax is withheld in all but two states(t/f)	false
special endorsement	when it's written "pay to the order of" and the new check owner's name
adjusting entry usually reversed if its these accounts	asset or liability
general ledger account	the amount of capital stock at the beginning of the year
the month following each calendar quarter	employers must pay unemployment taxes
petty cash is a	other revenue or expense
balance sheet	which statement show financial strength
capital is equal to what after closing entries	number on the balance sheet
interest expense credit	reversing entry for accrued interest expense
reversing entry for accrued interest income	income from interest gets debited and interest recieveable gets credited
interest earned but not received	realization of revenue
if cash short and over has a debit balance it is	other expense
amount available during the fiscal period	supplies in debit column of trial balance
beginning balance	merchandise inventory in the debit column of the trial balance
where do you get info for closing entries?	income statement and balance sheet section of the worksheet
stockholders equity	total investment to all owners
receipt	source document for recording cash received from signing a note payable
when is periodic inventory taken?	end of a fiscal period
quarterly	each employer must file a federal tax return showing the federal income tax and social security and medicare taxes due to the government
entry to establish petty cash	Petty cash debit and cash credit
income summary	not on any financial statements
land not depreciated	government prohibits it
FOB shipping point	paid by supplier
invoice	source doc for buying on account

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