Accounting Vocabulary
An accounting record that lists all transactions in chronological order
What is the general journal?
Job title for the head of a finance organization.
What is the CFO (Chief Financial Officer)?
Increase side of Cash account
What is debit?
Place of final entry for accounting transactions.
What is the general ledger?
This must be added to Liabilities in order to equal total assets.
What is Owner's Equity?
An accounting error that occurs when two digits are reversed.
What is a transposition error?
Accountant that reviews the financial statements for accuracy and honesty?
What is an auditor?
The increase side for accounts payable.
What is credit?
First step in the accounting cycle
What is gather and verify source documents?
Owners equity increasing and liabilities staying the same implies this must be true.
What is assets increase?
Term used to describe money a business earns for providing goods or services.
What is revenue?
An accounting career that focuses on taxes and preparing tax returns?
What is a Tax Accountant?
What is increased?
Process of moving information from the journal to individual ledger accounts
What is posting?
Increase in expenses has this affect on the accounting equation.
What is decrease owner's equity?
A document that serves as evidence of a sale of goods or services.
What is an invoice?
Type of accountant that works within a company to help managers make business decisions.
What is a Managerial Accountant?
Owner withdrawing cash would result in a debit to this account.
What is Owner's withdrawals?
Accounting tool that lists accounts and balances to verify debit/credit equality.
What is the Trail Balance?
Affect on accounting equation if a business buys supplies with cash.
What is no change (assets, liabilities and owners equity stay the same)?
Accounting term that refers to amounts a business owes to its creditors.
What are liabilities?
Type of accounting career that requires a certification and passing of a rigorous exam?
What is a Certified Public Accountant (CPA)?
These two accounts are affected when a business sells goods on credit.
What are Accounts Receivable and Revenue?
The implications when debits do not equal credits on the trial balance?
What is an accounting error?