Vocabulary
Accounting Concepts
The Worksheet
Financial Statements
Grab Bag
100
Assets taken out of a business for the owner's personal use.
What is drawing?
100
The concept that requires recording of both a debit and a credit.
What is Double Entry Accounting?
100
This answers the questions who, what and when.
What is the heading?
100
These accounts are used to produce a Balance sheet.
What are assets, liabilities, and owner's equity?
100
A journal amount column headed with an account title.
What is a special amount column?
200
The side of the account that is increased.
What is a normal balance?
200
The concept that assumes a business will remain in operation.
What is Going Concern?
200
The trial balance proves the debits and credits equal in the ......
What is the general ledger?
200
These accounts are used to produce an Income statement.
What are revenue and expenses?
200
The method to determine that the amount of cash agree with the accounting records.
What is proving cash?
300
A business paper from which information is obtained for a journal entry.
What is a source document?
300
The concept that states the period for which financial statements are prepared.
What is Accounting Period Cycle?
300
Changes recorded on a work sheet to update general ledger accounts at the end of the fiscal period.
What is an adjustment?
300
The percentage relationship between two items such as sales and expenses is called....
What is component percentage?
300
Transferring information from a journal entry to a ledger account.
What is posting?
400
A computerized cash payment system that transfers funds without the use of a check.
What is an electronic funds transfer?
400
The concept that assumes the Financial statements contain ALL information necessary to understand a business's financial condition.
What is Adequate Disclosure?
400
When revenues are greater than expenses a company has a .......
What is net income?
400
Old Capital + Net Income - ___________ = Current capital
What is drawing?
400
An endorsement consisting only of the endorser's signature.
What is a blank endorsement?
500
An amount of cash kept on hand and used for making small payments.
What is petty cash?
500
The concept that states the revenue earned and the expenses incurred are reported in the same period.
What is Matching Expenses with Revenues?
500
Mistakes due to transposed numbers are divisible by...
What is 9?
500
The balance sheet reports financial information... a. for a specific date b. for a period of time
What is a. for a specific date?
500
A check the bank refuses to pay.
What is a dishonored check?
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