Accounting Review- Key Terms

Key Terms 1

100

A subsidiary ledger containing only accounts for vendors from whom merchandise, or other items are purchased on account

Accounts Payable Ledger

200

Amount earned by a corporation and not yet distributed to stockholders

Retained Earnings

300

The length of time for which a business summarizes and reports financial information

Fiscal Period

400

This phrase is referring to A transaction in which the merchandise purchased is to be paid later

"Purchase on Account"

500

Information for each transaction recorded in a journal

Entry

Key Terms 2

100

The recording of debit and credit parts of a transaction

Double-Entry Accounting

200

These are the "fixed costs"

Production Costs

300

A subsidiary ledger containing only accounts for charge customers

Accounts Receivable Ledger

400

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank

Bank Statement

500

is the total amount of a plant asset's cost that has been allocated to depreciation expense

Accumulated Depreciation

Key Terms 3

100

Earnings distribution to stock-holders

Dividends

200

Promissory notes that a business accepts from a customer

Notes Receivable

300

Accounts used to accumulate ongoing information from one fiscal year to the next

Permanent Accounts

400

Anything of a cash value that is owned

Asset

500

This phrase is referring to each unit of ownership in a corporation

"share of stock"

Key Terms 4

100

The account used to summarize the owner's equity in a business

Capital

200

This is an accounting device used to analyze transactions

t-account

300

This person is an owner of one or more shares of corporation

Stockholder

400

An amount of cash kept on hand and used for making small payments (normally $100-$300 max)

Petty Cash

500

Refers to the direct material, direct labor associated with producing a product

Manufacturing Overhead Costs

Key Terms 5

100

The owner's investment in the business

owner's equity

200

A decrease in owner's equity resulting from the operation of a business

Expense

300

a form of recording transactions in chronological order

Journal

400

Promissory notes signed by a business and given to a creditor

Notes Payable

500

The principles of right and wrong that guide an individual in making decisions

Ethics