chapter 1-2
the process of planning, recording,
analyzing, and interpreting financial information.
What is accounting
This is A business form ordering a bank to pay cash from a bank account
What is a check
This is a bank account from which payments can be ordered by a depositor
what is a checking account
This is the area of accounting that focuses on reporting information to external users
What is financial accounting
This is the series of accounting activities included in recording financial information for a fiscal period
What is the accounting cycle
what allows the person extending the loan to see the financial position of a borrower on a specific date and make a lending decision.
what is a net worth statement
This is A form that shows all the cash sales for a day
What is a calculator tape
This is a bank form that lists the checks, currency, and coins an account holder is adding to the bank account
What is a deposit slip
This is a comparison between two components of financial information
what is a financial ratio
These are the accounts used to accumulate information until it is transferred to the owner’s capital account
What are temporary accounts
This is the difference between assets and liabilities
What is equity
This is the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
what is file maintenance
This is a endorsement restricting further transfer of a check’s ownership
What is a restrictive endorsement
This is the process of reporting an amount on a financial statement as a percentage of another item on the same financial statement
What is a vertical analysis
These are the journal entries used to prepare temporary accounts for a new fiscal period
what are closing entries
this is The amount remaining after the value of all liabilities is subtracted from the value of all assets
what is owners equity
This is the process writing an account title and number on the heading of an account
What is opening and account
This is a columnar accounting form used to summarize the general ledger information needed to prepare financial statements
What is a work sheet
This is the 3rd step in writing The heading in a balance sheet
what is Centering the date of the report on the third line.
This is the second step in the Closing Entry to Record Net Income or Net Loss and Close the Income Summary Account
What is debit
this is a person or business to whom a liability is owed
what is a creditor
this is the process of transferring information from a journal entry to a ledger account
What is posting
This is the process reporting income when it is earned and expenses when they are incurred
What is the accrual basis of accounting
This is the second step in writing the Heading of a Statement of Owner’s Equity
What is writing the name of the statement
This is the first step in closing entries
what is close the sales