Chapters 1-2
What is an entry-level job that can vary from specializing in one part of the system to doing a wide range of tasks?
Accounting Clerk
What is the accounting equation?
Assets = Liabilities + Owner's Equity
Which type of accounts start each new accounting period with a zero balance?
Temporary Accounts
What is the process of transferring information from the journal to individual general ledger accounts?
Posting
Which form summarizes the changes in owner's capital accounts?
Statement of Changes in Owner's Equity
What is it called to make contacts with people to share information and advice?
Networking
What is the amount owed to the creditors of a business?
Accounts Payable
What is the 3rd step in the accounting cycle?
Journalizing Each Transaction (General Journal)
What is it called when you add all the debit balances, add all the credit balances, then compare them to see if they are equal?
Proving the Ledger
Which form summarizes the ending in the permanent accounts?
Balance Sheet
What type of business buys finished products and resells them to individuals or other businesses?
Merchandising Business
What is the cost of products or services used to operate a business?
Expense
List the 3 rules for Revenue Accounts.
1.) Increased on Credit
2.) Decreased on Debit
3.) Normal Balance on Credit
What type of error occurs when two digits within an amount are accidentally reversed?
Transposition Error
What does it mean to list the balance sheet section one under the other?
Report Form
Which type of business organization is easiest to raise money, easiest to expand, easy to transfer ownership, and has losses limited to investment?
Corporation
List the 3 rules for Liabilities and Owner's Capital Accounts.
1.) Increase on Credit
2.) Decrease on Debit
3.) Normal Balance on Credit
What are the two types of Accounting Periods?
Fiscal Year and Calendar Year
"To Draw a Line"
Ruling
Current Assets divided by Current Liabilities = ?
Current Ratio
What is it called when a business is expected to continue?
Going Concern
Double-Entry Accounting
What is an all-purpose journal in which of all the transactions of a business may be recorded?
General Journal
Enter the 3 parts of a work sheet heading in correct order.
1.) Name of Business
2.) Name of Accounting Form
3.) Date of the Accounting Period
Current Assets minus Current Liabilities =
Working Capital