An asset, liability, or owners equity account whose balance is carried over from year to year
What is permanent account?
100
Normal balance is always the side whether it be credit ordebit on which it increases
What is normal balance?
100
An account that represents the costs of products started by not completed. (In progress)
What is WHIP inventory?
100
A cost flow assumption where costs are charged to Costs of Goods Sold in chronological order
First sold first written
What is FIFO?
100
The process of recording the appropriate part of a journal entry to the affected account
What is posting?
200
An internal entry made to adjust the accounts for internal events prior to preparing financial statements
What is adjusting entries?
200
An inventory account used in a manufacturing company to record the direct materials on hand
What is direct materials inventory?
200
An account that represents the costs incurred to purchase and receive direct materials
What is direct materials inventory?
200
A cost flow assumption where costs are charged to Costs of Goods Sold in reverse chronological order?
Last in first written
What is LIFO?
200
A place where the results of events affecting that item are recorded
What is an account?
300
An entry made to to close out a temporary account, transfer the balance to retained earnings and determine net income
What is closing entry?
300
A temporary account used to report losses of inventory
What is loss on inventory?
300
The difference between the standard and actual amounts of inputs
What is variance?
300
A temporary account used to record cash discounts taken by customers
What is sales discount?
300
An event that management wants to plan and evaluate
What is business event?
400
An adjusting entry that occurs when expenses are incurred in one accounting period and payment is made in another period?
What is expense accrual?
400
A system used by companies that need to determine the balance in inventory and the cost of goods sold only at specific points in time
What is periodic inventory system?
400
An account that represents the costs of products completed by not yet sold
What is finished goods inventory?
400
A variance that indicates the difference in revenue due to a change in selling price
What is sales price variance?
400
A variance that indicates the difference in revenue due to a change in selling price
What is sales price variance?
500
An adjusting entry that occurs when a company uses previously purchased assets in an attempt to generate revenue in future periods?
What is expense deferral?
500
A system used by companies that want to keep a running balance of the cost of inventory available for sale and the cost of goods sold during the period
What is perpetual inventory system?
500
The amount of overhead applied to production is less than the actual amount of overhead incurred.
What is under applied overhead?
500
A temporary account that represents the returns by customers and price allowances granted to customers
What is sales returns and allowances?
500
A costing system where the price paid for an item is specifically identified with the item and expensed when the item is sold