Journalizing
Concepts
Financial Statements
Vocab Terms
Say WHAT?!?
100
DR - Capital CR - Cash
What is the correct way to journalize an owner investing cash into the business?
100
Keeping your business records separate from your personal financial records.
What is 'business entity'?
100
Indicates a business's financial condition on a specific date and contains assets, liabilities, and owner's equity accounts.
What is a balance sheet?
100
A form on which a brief message is written describing a transaction.
What is a memorandum?
100
The difference between owner's equity and owners' equity.
What is multiple business owners?
200
DR Petty Cash CR Cash
What is the proper way to establish a petty cash account?
200
Keeping records for one month or one year so they can be used as a means of comparison for future timeframes.
What is 'Accounting Period Cycle' or 'Fiscal Period'?
200
The financial statement that shows how the owners will share profits or losses.
What is a distribution of net income?
200
The process of transferring information from a journal entry to a ledger account.
What is posting?
200
The two accounts used to adjust the inventory levels of merchandise at the end of the year.
What are Merchandise Inventory and Income Summary?
300
The source document for recording a service charge from the bank.
What is a memorandum?
300
Providing EVERY detail of the business in financial documents, not withholding any information.
What is 'Adequate Disclosure'?
300
The relationship between the main items on an income statement and sales.
What is a component percentage?
300
A listing of vendor accounts, account balanced, and total amount due to all vendors.
What is a schedule of accounts payable? OR What is an Accounts Payable Subsidiary Ledger?
300
The rationale for why a check is not written out to pay for a credit card fee expense from a bank.
What is 'an automatic deduction from the bank'?
400
ie: DR Miscellaneous Expense DR Advertising Expense DR Supplies - Office CR Cash
What is replenishing the petty cash account?
400
Running your business under the assumption that it will operate indefinitely.
What is 'Going Concern'?
400
The planning tool that is needed to complete all of the financial statements.
What is a work sheet?
400
The total original price of all merchandise sold during a fiscal period.
What is cost of merchandise sold?
400
The correcting entry for when Supplies-Office was accidentally debited in error to Purchases.
What is DR Supplies-Office and CR Purchases.
500
The four closing entries at the end of a fiscal period.
What is closing revenue, closing expenses, reporting net income & closing income summary, and closing the drawing to the capital accounts?
500
Calculating adjustments to insurance and supplies is an application of this accounting concept.
What is 'matching revenue with expenses'?
500
The statement that analyzes changes in each owner's capital account throughout the year.
What is the Owners' Equity Statement?
500
The wording used for a special endorsement.
What is 'Pay to the Order of'?
500
The rationale for why you record credit card receipts as cash when completing a deposit.
What is the bank treats the major credit card services as cash?
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