Vocab Ch 6
What is a ATM?
Automatic Teller Machine
What is the income summary?
Income summary is the account that revenue and expenses are closed into. It is a very temporary account.
What side is the credit side?
Right Side
What is a Canceled Check?
Which accounts are temporary?
Revenue, Expenses, Withdrawals, and Income Summary
What goes first? The balance sheet or the income statement?
The income statement
What is a Credit Memorandum?
A increase in the depositors balance after a collected NSF check.
Which accounts are permanent?
Assets, Liabilities, and Capital
What is the process of transferring from the general journal to the general ledger?
Posting
What are the 3 check endorsements?
Blank, Full, and Restrictive
Where are adjustments first recorded?
They are first recorded on the worksheet.
What is it called when the make up of the assets has changed but the total amount has stayed the same?
Shift in assets
What is Bank Reconciliation?
The process of checking and adjusting the checkbook with bank statement.
What is the process for closing accounts?
Close Revenue, Close Expenses, Close Income Summary, Close Withdrawals
Why dose Kralik love debit cards?
Because the ATM ate his money