| A | B |
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| accounting cycle | The various activities a business completes to organize its accounting records in an orderly fashion. |
| fiscal year | An accounting period of twelve months ending on the last day of any month except for December. |
| general journal | An all-purpose journal used for recording business transactions. |
| source document | Any type of business paper that verifies that a transaction occurred. |
| journalizing | Another term used for "recording" a business transaction. |
| calendar year | An accounting period beginning on January 1 and ending on December 31. |
| financial statements | Summarize the changes resulting from business transactions that have occurred during an accounting period. |
| balance sheet | The financial statement that reports the final balances in all asset, liability, and owner's equity accounts at the end of the accounting period. |
| statement of changes in owner's equity | Completed as a support document for the balance sheet. |
| return on sales | Indicates what percentage of net sales represents profits |
| temporary capital accounts | Accounts that start an accounting period with zero balances. |
| compound entry | A journal entry with two or more debits or two or more credit. |
| Income Summary account | A general ledger account used to accumulate and summarize the revenue and expenses for a period. |
| permanent accounts | Only these balances are listed in the post-closing trial balance. |
| closing entries | Are made to close out or reduce to zero the balance of certain general ledger accounts. |
| EFT (Electronic Funds Transfer System) | Enables banks to transfer quickly and accurately from one account to another account without the immediate exchange of checks. |
| bank statement | An itemized record of all the transactions occurring in a depositor's account over a given period. |
| external controls | Outside controls a business can use to protect its cash and other assets. |
| voiding a check | The practice of marking a check that contains an error so that it will not be used. |
| drawee | The bank on which the check is written. |
| NSF check | A check returned by the bank because there are not sufficient funds in the drawer's checking account to cover the amount of the check. |
| drawer | The person who signs a check. |
| cancelled checks | Checks that are paid by the bank, deducted from the depositor's account, and returned with the bank statement. |
| payee | The person or business to whom a check is written. |
| outstanding checks | Checks that have been written but not yet presented to the bank for payment. |
| endorsement | An authorized signature that is written or stamped on the back of a check. |
| deposit slip | The bank form on which the currency and checks to be deposited are listed. |
| internal controls | Steps that a business takes to protect its cash and other assets. |
| signature card | Contains the signature of the person(s) authorized to write checks on a bank account. |
| stop payment order | A demand by the depositor that the bank not honor a certain specific check. |
| checking account | A type of banking account where a business can make deposits and write checks against the account balance. |
| reconciling the bank statement | The process of determining any differences between the balance shown on the bank statement and the checkbook balance. |
| check | The written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the order. |
| outstanding deposits | Deposits that have been made and recorded in the checkbook but that do not appear on the bank statement. |
| depositor | A person or business that has cash on deposit at a bank. |
| restrictive | An endorsement that limits how a check may be handled to protect the check from being cashed by anyone except the payee. |
