Accounting 2 - Terms Review Ch. 1-17

Chapters 1-3

100

An amount owed is called a:

Liability

200

GAAP is an acronym for:

Generally Accepted Accounting Principles

300

When revenue is recorded at the time goods or services are sold is known as:

Realization of Revenue

400

An accounting device used to analyze transactions is called a:

T account

500

The recording of debit and credit parts of a transaction is called:

Double-entry accounting

Chapters 4-8

100

This contains all accounts needed to prepare financial statements.

General Ledger

200

The three types of check endorsements (MUST GET ALL THREE)

Blank endorsement

Special endorsement

Restrictive endorsement

300

Journal entries recorded to update general ledger accounts at the end of a fiscal period are called:

Adjusting entries

400

The area of accounting that focuses on reporting information to internal users is called:

Managerial accounting

500

The four steps when journalizing closing entries are (MUST name all four):

Step 1 - close sales to income summary

Step 2 - close expenses to income summary

Step 3 - close net income(or loss) to income summary

Step 4 - Close drawing to capital account

Chapters 9-12

100

An organization with the legal rights of a person which many persons or other corporations may own.

Corporation

200

The two types of inventory methods are:

Periodic Inventory

Physical Inventory

300

A listing of customer accounts, account balances, and total amount due from all customers is called a:

Schedule of accounts receivable

400

Earnings distributed to stockholders are called:

Dividends

500

Summarizes the earnings, deductions, and net pay of all employees for one pay period:

Payroll register

Chapters 13-15

100

FUTA acronym stands for:

Federal Unemployment Tax Act

200

The total of gross earnings for all employees earning hourly wages, salaries, and commissions is called:

Salary Expense

300

Accounts receivable that cannot be collected are called:

Uncollectible Accounts

400

The date on which the principal of a note is due to be repaid is called the:

Maturity date

500

An estimate of the amount that will be received for an asset at the time of its disposal is called its:

Salvage value

Chapters 16-17

100

The amount of sales, less sales discounts and sales returns and allowances, is called:

Net sales

200

A value assigned to a share of stock and printed on the stock certificate is called:

Par value

300

Liabilities owed for more than a year are called:

Long-term liabilities

400

Financial statements that provide information for multiple fiscal periods are called:

Comparative financial statements

500

Identify the ratio:

Total liabilities divided by total assets:

Debt ratio