233 Printing Flashcards of Accounting I Basics)

Objective EvidenceUsing a memorandum as the source document for a

dishonored check is an application of this accounting

concept.

Matching Expenses with RevenueMaking adjustments to general ledger accounts is an

application of this accounting concept.

Adequate DisclosureWhen financial statements contain all necessary

information to understand a business' financial

condition is an application of this acccounting

concept.

Accounting PeriodCycle

Preparing financial statements at the end of each

monthly fiscal period is an application of this

accounting concept.

Inaccurate accounting recordsThis often contributes to business

failure and bankruptcy.

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The language of business.

Proprietorship, Partnership, andCorporation

The major forms of businessorganizations.

An organization with the legal rights of a person and

which may be owned by many people.

A business in which two or more persons combine

their assets and skills>

Service Business Business that performs an activityor service for a fee.


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Planning, recording, analyzing, and interpreting

financial information.

A business assumes it will continue to operate for

many years. At retirement the owner will sell the

business to someone else who will continue its

operation. This is an example of the application of

this accounting concept.

A financial statement that reports assets, liabilities,

and owner's equity on a specific date.

A business owned by one person.

Financial rights to the assets of abusiness.


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A business activity that changes assets, liabilities, or

owner's equity.

General Office Clerk/AssistantA person who does general kinds of office tasks,

including some accounting tasks.

A person who does general accounting work plus

some summarizing and analyzing of accounting

information.

A person who plans, summarizes, analyzes, and

interprets accounting information.

Owner's Equity The amount remaining after the value of all liabilites

are subtracted from the value of all assets.


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An amount of cash kept on hand and used for

making small payments.

Electronic Funds TransferComputerized cash payments system that uses

electronic impulses to transfer funds.

A report of deposits, withdrawals, and bank balances

sent to a depositor.

Checking Account A bank account from which payments can be ordered

by a depositor.

Changes recorded on a work sheet to update general

ledger accounts at the end of a fiscal period.


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Income Statement A financial statement showing the revenue and

expenses for a fiscal period.

A proof of the equality of debits and credits in a

general ledger.

A columnar accounting form used to summarize the

general ledger information needed to prepare

financial statements.

The date, debit and credit part of a transaction and

source document are all parts of this.

Closing Entries Journal entries used to prepare tempory accounts

for a new fiscal period.


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Accounting ClerkEntry level job that can vary with the size of the

company from specialization in one part of the

system to a wide range of record keeping tasks.

Accounts Payable Thte amount of money owed, or payable, to the

creditors of a business.

Accounts Receivable The total amount of money owed toa business.

An Account whose balance decreases another

account's balance.

Double EntryAccounting

The recording of debit and creditparts of a transaction.


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An account showing the total assets taken out of the

business by the owner.

A decrease in owner's equity from the operation of a

business.

Financial Statement`A report prepared to summarize the changes

resulting from business transactions that occur

during an accounting period.

General Journal A journal with two amount columns in which all

kinds of entries can be recorded.

A gain measured in money that derives from capital

or labor; also the amount of such gain received by an

individual in a given period of time.


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Recording transactions in a journal.

A form on which a brief message is written describing

a transaction.

Post-Closing Trial BalanceA trial balance prepared after the closing entries are

posted.

Determining that amounts are inagreement or in balance.

Determining that the amount of cash agrees with the

accounting records.


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Public AccountingFirm

A business selling accounting services to the general

public.

To gain possession by paying moneyor the equivalent.

A business form giving written acknowledgment for

cash received.

An increase in owner's equity resulting from the

operation of a business.

Special AmountColumn

A journal amount column headedwith an account title.


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Assets taken out of a business for the owner's

personal use.


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233 Printing Flashcards of Accounting I Basics)

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