Vocab Unit 5
An amount that is added to or subtracted from an account balance to bring the balance up to date
What is an adjustment?
A device used to summarize all the changes that affect a single item in the accounting equation
What is an account?
An entry made in the left-hand amount column
What is debit?
A business form used for recording accounting information in chronological order
What is a general journal?
What is an accountant?
A financial Statement that reports assets, liabilities and owner's equity on a specific date
What is a balance sheet?
A journal in which transactions are first recorded
What is the book of original entry?
Anything of value owned by a business
What is an asset?
Any entry made in the right-hand amount column of a general journal
What is Credit?
A person responsible for recording business transactions
What is a bookkeeper?
The same Accounting concepts are applied the same way for each accounting period for as long as the business operates
What is Consistent Reporting?
A list of all the accounts used by a business entity
What is the chart of accounts?
The name given to any account
What is the account title?
A form that shows the financial position of a business on a specific date
What is a balance sheet?
The existence of a business as an artificial individual
What is a business entity?
The length of the accounting cycle for which a business summarizes and reports financial information
What is a fiscal period?
A group of accounts
What is a ledger?
Each financial transaction has a double effect and is recorded so that total debits equals total credits
What is double entry accounting?
The process of transferring the information from a journal entry to the ledger accounts
What is Posting?
The claims against the assets of a business
What are equities?
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
What is the worksheet?
The number assigned to an account in the ledger
What is an account number?
Writing the account name and number as the heading for the account
What is opening an account?
The accounting concept used by an accountant when he prepares financial statements with the intent that a business will exist forever
What is going concern?
The owner of a business
What is a proprietor?