Key Terms & Concepts
Key Terms & Concepts
Chart of Accounts
Chart of Accounts
Transactions
100
A group of accounts is called this
What is a Ledger?
100
Determining that the amount of cash agrees with the balance of cash in the accounting records.
What is Proving Cash?
100
Asset account numbers usually start with this number
What is 1 (Like 110).
100
Liability Accounts usually start with this number...
What is 2 (like 210)
100
Received cash on account from the Delta Company
Debit CASH and Credit A/R DELTA COMPANY
200
A ledger that contains all accounts needed to prepare financial statements
What is the general ledger?
200
Transferring information from a journal entry to a ledger account.
What is Posting?
200
Owner's Equity Account numbers usually start with this number...
What is 3 (310)?
200
Expense account numbers usually start with this number...
What is 5(510)?
200
Bought supplies on account from the Five Star Supply Company
Debit SUPPLIES and Credit A/P FIVE STAR SUPPLY COMPANY
300
The number assigned to an account.
What is the Account Number?
300
Writing an account title and number in the heading of an account.
What is Opening an Account?
300
Revenue Account numbers usually start with this number...
What is 4 (410)?
300
Asset accounts are listed by...
What is Liquidity?
300
Sold services on account to Oakdale Schools
Debit A/R OAKDALE SCHOOLS and credit SALES
400
The procedure for arranging accounts in a ledger, assigning account numbers, and keeping records current.
What is File Maintenance?
400
A journal entry made to correct an error in the ledger.
What is a Correcting Entry?
400
The Balance Sheet Accounts are these three categories of accounts...
What are Asset, Liabilities, and Owner's Equity Accounts?
400
The Income Statement Accounts are made up of these two account classifications...
What are Revenues and Expenses
400
Paid cash for the electric bill
Debit UTILITIES EXPENSE and credit CASH
500
The Accounting Concept that states that there must be proof in documentation that a transaction actually occurred.
What is Objective Evidence Concept?
500
The Accounting Concept that states that personal records have to be kept separate from business records.
What is Business Entity Concept?
500
Expenses are listed in this order...
What is alphabetical?
500
There are usually numbers skipped when assigning account numbers because...
There is room left to add accounts in the future.
500
Check endorsement that restricts further transfer of a check's ownership
What is a restrictive endorsement?
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