F
The increase side of an account.
normal balance
A paper that is prepared as evidence that a transaction has occurred.
source document
Chronological record of the transactions of a business
The process of transferring information from the journal to individual general ledger accounts.
posting
Occurs when two digits within an amount are accidentally reversed, or transposed. For example, the amount $325 may have been written as $352.
transposition error
Accounts used to collect information that will be transferred to a permanent capital account at the end of a single accounting period (for example, revenue, expense, and the owner’s withdrawals account).
Temporary accounts
Lists specific information about a business transaction involving the buying and selling of an item on account.
invoice
The process of recording business transactions in a journal.
journalizing
A permanent record organized by account number.
general ledger
Occurs when a decimal point is moved by mistake. If you write $1,800 as either $180 or $18,000, you made a slide error.
slide error
Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period (for example, assets, liabilities, and the owner’s capital account).
Permanent accounts
A record of cash received by a business.
receipt
An accounting period of 12 months.
fiscal year
The accounting stationery used to record financial information about specific accounts in a manual accounting system.
ledger account forms
A correction made when an error in a journal entry is discovered after posting.
correcting entry
Revenue is recorded on the date earned, even if cash has not been received.
revenue recognition
A brief written message that describes a transaction that takes place within a business.
memorandum
Accounting period beginning on Jan 1st and ending December 31st
calendar year
Adding all the debit balances, then adding all the credit balances, and finally comparing the two totals to see whether they are equal.
proving the ledger
how do you solve for valuation of a business
Value = offer price divided by the equity percent
The accounting period of a business is separated into activities that help the business keep its accounting records in an orderly fashion.
accounting cycle
Lists the same information that you can find on a check. Date, person or business for whom the check is written and the amount the check is written for.
check stub
An all-purpose journal in which all the transactions of a business may be recorded. An all-purpose journal in which all the transactions of a business may be recorded.
general journal
Is a list of all the account names and their current balances.
trial balance
What is my company worth if I am asking for an investment of $200,000 and giving away a 15% equity share to the investor?
$1,333,333.33