"Accounts"
the art of the recording and reporting financial transactions.
What is Accounting
The amount of money earned over and above the amount spent (expenses) to keep the business operating.
What is a Profit
A ledger that contains all accounts to prepare financial statements
What is general ledger?
The name of the 4000 division in the chart of accounts
What is Revenue?
•An entry-level job that can vary from specializing in one part of the system (i.e. Purchasing or Accounts Payable) to doing a wide range of tasks
What is Accounting Clerk
The entry to a credit
What is a debit?
Loss of value of an asset over a period of time
What is depreciation?
An additional journal entry to correct another entry
What is a correcting entry?
The starting number for the Liabilities Division.
What is a 2?
•A person who handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports
What is an Accountant
The basic accounting formula
What is Assets = Liabilities and Owner's Equity?
Comparing the bank account balance with internal financial records.
What is a bank reconciliation?
Transferring information from a journal entry to a ledger account
What is posting?
The list that identifies the five parts of the chart of accounts
What are Income/Revenue, Expenses, Assest, Liability, Owner's Equity/Net Assets?
•This line on the balance sheet refers to money owed by a company
What is Accounts Payable?
The difference between Assets and Liabilities
What is Owner's Equity(for profit) or Net Assets (non-profit)
Recognizing revenue when earned, expense when incurred
What is accrual method?
Revenue over Expenses
What is an Income Statement or Statement of Activities?
The given name to an account.
What is a title?
The amount that is owed to a business
What is Accounts Receivable?
The normal balance of a liability
What is credit?
An accounting period of 12 consecutive months which CAN match the calendar year or not.
What is a fiscal year?
Accounting entries require a minimum of these many lines
What is two?
The change in beginning and ending net assets
What are Net Assets?