Accounting Principles & Records 1
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
File Maintenance
A record that summarizes all the transactions pertaining to a single item in the accounting equation.
Account
Anything of value that is owned.
Asset
Transferring transaction information from a journal entry to a ledger account.
Posting
A deduction that a vendor allows on the invoice amount to encourage prompt payment.
Cash Discount
A group of accounts.
Ledger
A form for recording transactions in chronological order.
Journal
An amount owed by a business.
Liability
A business that purchases and sells goods.
Merchandising Business
When a company that has purchased merchandise on account takes a cash discount.
A ledger that is summarized in a single general ledger account.
Subsidiary Ledger
The recording of debit and credit parts of a transaction.
Double-Entry Accounting
Financial rights to the assets of a business.
Equities
A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.
Debit Memorandum
An amount of cash kept on hand and used for making small payments.
Petty Cash
This contains all accounts needed to prepare financial statements.
General Ledger
A journal used to record only one kind of transaction.
Special Journal
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
Owner's Equity
A system showing accounting information for two or more departments.
Departmental Accounting System
The meaning of "M5".
Memorandum 5
An account in a general ledger that summarizes all accounts in a subsidiary ledger.
Controlling Account
Business papers from which information is obtained for a journal entry.
Source Documents
Shows the relationship among assets, liabilities, and owner's equity.
Accounting Equation
An account that reduces a related account on a financial statement.
Contra Account
The meaning of "T12".
Calculator Tape 12