| A | B |
|---|
| work sheet | working paper used to collect info from the ledger accnts on 1 sheet of paper |
| ruling | drawing a line |
| matching principle | expenses are matched against revenue |
| net income | amt left after expenses have been subtracted from revenue |
| net loss | expenses greater than revenue |
| financial statements | reports repared to summarize the changes resulting from business transactions during a fiscal period |
| income statement | reports net income or net loss for the fiscal period |
| statement of changes in OE | summarize the effects on the capital acct of business transactions |
| balance sheet | report of the final balances in all the asset, liability, and owner's equity at the end of the fiscal period |
| report form | classifications of balance sheet acounts are shown one under the other |
| closing entries | journal entries made to close out the balances in the temporary capital accounts and to transfer the net income or net loss for the period to capital acct |
| post-closing trial balance | trial balance prepared after closing |
| INcome Summary acct | accumulate and summarize the revenue and expencses for the period |
| compound entry | journal entry having 2 or more debits or credits |
| internal controls | steps business takes to protect cash and other assets |
| external controls | controls provided outside the business |
| checking account | bank account that allows a bank customer to deposit cash and to write checks |
| check | written order from a depositor telling the bank to pay a stated amt of cash |
| depositor | person that has cash on deposit in a bank |
| signature card | contains the signature of the person authoried to write checks |
| deposit slip | bank form on which the currency and checks to be deposited are listed |
| endorsement | authorized signature written or stamped on the back of a check |
| restrictive endorsement | restricts how a check may be handled |
| drawer | person who signs a check |
| drawee | bank on which the check is written |
| bank statement | itemized record of all transactions occurring in a depositor's account |
| canceled checks | checks returned that are paid by the bank |
| reconciling the bank statement | determining differences between balance on bank statement and the checkbook balance |
| outstanding checks | checks have been written but not yet presented to bank |
| outstanding deposits | deposits have been made and recorded in checkbook but do not appear on bank statement |
| bank service charge | fee charged by bank for maintaining bank records |
| stop payment order | demand by depositor that the bank not honor a certain ck |
| NSF ck | returned by the bank because there are not sufficient funds in the drawer's cking acct to cover the amt of the ck |
| electronic funds transfer sys. | enables banks to transfer funds from the acct of 1 depositor to accnt of another quickly and accurately |
