Accounting 101
A, L & OE
Accounting Cycle
Vocabulary
Miscellaneous
100

These are the 5 main activities involved in accounting

What are 1) Gathering financial information, 2) Preparing and collecting records, 3) Summarizing and classifying financial information, 4) Preparing formation reports and summaries and 5) Establishing controls to promote accuracy and honesty among employees?

100

These are items owned that have monetary value

What are assets?

100
It is anything of value that a person or business owns and therefore controls
What is property?
100
What is Asset, Liability, Owners Capital
What is permanent accounts?
100

Th e amount added to the cost of merchandise to establish the selling price

What is markup?

200
This is the purpose of accounting
What is to 1)identify, 2)record and 3)communicate financial information?
200

An agreement between a buyer and a seller about payment for merchandise is called

What are terms of sale?

200
The business or person selling the item on credit, can be any person/business you owe money to
Who is a creditor?
200

What is A journal used to record only one kind of transaction is called

What is a special journal

200

An organization with the legal rights of a person and which many persons may own is called

What is a corporation?

300
These represent the types of business organizations that use accounting.
What are 1)sole proprietorships, 2)partnerships and 3)corporations?
300
This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
300
Identify the accounts affected Classify the account affected Determine the amount of increase or decrease for each account affected Make sure the accounting equation remains in balance
What is analyze a business transaction?
300
When you buy something and agree to pay for it later
What is Credit?
300

Each unit of ownership in a corporation is called

What is a stock?

400

An invoice used as a source document for recording a purchase on account transaction is called

What is a purchase invoice

400
This is the difference between total assets and total liabilities.
What is Owner's Equity?
400

A business from which merchandise is purchased or supplies or other assets are bought is called

What is a vendor?

400
Property or items of value owned by a business
What is assets?
400
This system is used to analyze and record a transaction
What is a double-entry accounting?
500

A special journal used to record only purchases of merchandise on account

What is a purchase journal?

500
The term used to explain how quickly a company can convert assets into cash.
What is liquidity?
500
It is a legal right to property
What is a financial claim?
500
Is a list of all accounts used by a business.
What is chart of accounts?
500
Income earned from the sale of goods or services is called?
What is revenue?
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