The process of recording the entire accounting event in a journal.
What is Journalizing.
100
An ____ event must be specific to the entity, measurable, and impact assets, liabilities, and/or owner's’ equity.
What is Accounting.
100
A temporary account to record the cost of inventory purchased.
What is Purchases.
100
A formal record of the financial activities and position of a business, person, or other entity.
What is Financial Statement.
100
The company must have a person or persons authorized to order goods.
What is Determine the need for goods/services.
200
The process of recording the appropriate portion of an accounting event in the account affected.
What is Posting.
200
A ______ event is any activity the company wants to plan and evaluate. Thus all accounting events are business events, but not all business events are accounting events.
What is Business.
200
A temporary account to record the purchase discounts taken (gross price method).
What is Purchases Discount.
200
A financial statement that measures a company's financial performance over a specific accounting period.
What is Income Statement.
200
The company must determine where to buy the items it needs.
What is Select suppliers and order goods/services.
300
Are prepared to adjust the accounting records for internal events prior to preparing financial statements.
What is Adjusting Entries.
300
Receive inventory.
What is Accounting Event.
300
A temporary account to record the cost of inventory returned or allowances given by suppliers.
What is Purchases Returns and Allowances.
300
A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.
What is Statement of Cash Flows.
300
The company must inspect, store, and secure the items it has purchased. In addition, the company might require a purchase return when its sends back items to the supplier or a purchase allowance when it requests a reduction in the purchase price because the company is not satisfied with the product or service.
What is Receive goods.
400
Are prepared to zero-out income statement accounts and transfer their balances to owners’ equity (retained earnings in a corporation).
What is Closing Entries.
400
Sell inventory.
What is Accounting Event.
400
A temporary account to record the cost of freight (or insurance) paid on inventory purchases (included in inventory cost).
What is Freight (or insurance) paid on purchases.
400
A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
What is Balance Sheet.
400
The company must ensure that it pays only for goods ordered and received. In addition, it should pay for its purchases in time to receive any available purchase discounts.
What is Pay for goods.
500
A company's main accounting records.
What is General Ledger.
500
Determine the need for inventory.
What is Business Event.
500
Determines ending inventory and cost of goods sold on a continuous basis.
What is Perpetual.
500
_____ is prepared in accordance with generally accepted accounting principles (GAAP).
What is Statement of Retained Earnings.
500
A person is authorized to order goods for the company.