A transaction or change recognized on the financial statements of an accounting entity. This event can be either external or internal.
What is an accounting event
100
a general ledger account that begins each accounting year with a zero balance. At the end of the accounting year any balance in the account will be transferred to another account. This is referred to as closing the account. It is not an account that is forever
What is a temporary account
100
a system of inventory in which updates are made on a periodic basis. There is no effort is made to keep up-to-date records of either the inventory or the cost of goods sold.
What is a periodic inventory system
100
revenue, expenses, costs of goods sold, pre-tax profit, etc.
What are the parts of the income statement
100
tax levied by a government directly on income, especially an annual tax on personal income.
What is income tax
200
Represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income. (assets minus the amount of liabilities.)
What is owner's equity
200
journal entries made at the end of an accounting cycle to update certain revenue and expense accounts and to make sure you comply with the matching principle. These entries are adjusted so that the closing entries are correct.
What is an adjusting entry
200
also called continuous inventory, describes systems of trading stock where information on inventory quantity and availability is updated on a continuous basis as a function of doing business.
What is a perpetual inventory system
200
Assets, Liabilities and owner's equity
What are the 3 parts of the balance sheet
200
A level that the current amount of a product that a business has in stock. This level and sales rate of a product will be used by a typical inventory manager to determine the optimal time for either producing more, if they are managing a manufacturer's warehouse, or to order more if the product is being stored as stock at a retail store.
What is inventory level
300
income, especially when of a company or organization and of a substantial nature. (another word for sale)
What is a revenue
300
journal entry made at the end of an accounting period to transfer the temporary account balances to the permanent accounts.
What is a closing entry
300
A price method that records an invoice at full price without regard to any cash discounts offered. In other words, the this method assumes that the customer will not take advantage of the cash or early payment discount.
What is the gross price method
300
Operating, investing and financing activities (cash in and cash out of the business)
What is part of the statement of cash flow
300
Income statement classification that covers earnings and costs associated with activities outside of, or peripheral to, the central business of a firm
What is are revenue and expenses
400
the cost required for something; the money spent on something for a business
What is an expense
400
accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur.
What is the accrual method
400
A priving method that has a way to record purchases of inventory with a cash discount. The net method assumes the retailer always takes advantage of the discounted cash price and records the purchased inventory at the discounted price
What is a net price method
400
First inventory in, first inventory that is sold
What is FIFO
400
The amount is less than the true amount. In other words, the amount is too small.
What is an understated amount
500
Also called a real account, is a balance sheet account that is used to record activities that relate to future periods. The reason they are called this is because they are never closed at the end of an accounting period; they are forever.
What is a permanent account
500
assets, liabilities, owners quity
What are the 3 parts of the balance sheet
500
Type of accounting that recognizes transactions only when there is an exchange of cash.
What is cash accounting
500
The latest inventory within the company is the first that is given out for sale.
What is LIFO
500
The reported amount is incorrect, and the reported amount is more than the true or correct amount.