Cash control systems
A signature or stamp on the back of a check transferring ownership
endorsement
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
work sheet.
The area of accounting that focuses on reporting information to external users
Financial Accounting
Accounts used to accumulate information from one fiscal period to the next.
permanent accounts.
A check that has been payed off by the bank
canceled check
A proof of the equality of debits and credits in a general ledger
Trial balance
The area of accounting that focuses on reporting information to internal users.
managerial accounting
Accounts used to accumulate information until it is transferred to the owner’s capital account
Temporary accounts
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper document.
electronic funds transfer
A financial statement showing the revenue and expenses for a fiscal period.
Income statement
Any persons or group affected by an action
stakeholders
Journal entries used to prepare temporary accounts for a new fiscal period.
Closing entries
Petty cash on hand amount is less than a recorded amount.
cash short
The difference between total revenue and total expenses when total expenses are greater.
A financial road map used by individuals and companies as a guide for spending and saving.
budget
A trial balance prepared after the closing entries are posted.
post-closing trial balance.
A check dishonored by the bank because of insufficient funds In the account of the maker.
non-sufficient funds check
The difference between total revenue and total expenses when total revenue is greater.
Net income
A positive balance after total expenses are subtracted from total income.
surplus
The series of accounting activities included in recording financial information for a fiscal period
accounting cycle