| A | B |
|---|
| temporary accounts | accounts used to store information until transferred to the owner's capital account |
| permanent accounts | the accounts used to accumulate information from one fiscal period to the next |
| adjusting entries | journal entries recorded to update general ledger acounts at the end of the fiscal period |
| post-closing trial balance | a trial balance prepared after the closing entries are posted |
| accounting cycle | the series of accounting activities included in recording financial information for a fiscal period |
| account number | the number assigned to an account |
| bank statement | a report of deposits, withdrawals, and bank balance sent to a depositor by a bank |
| blank endorsement | an endorsement consisting of the payee's signature on the back of the check |
| cash sale | a sale where is cash received at the time of the sale |
| checking account | a bank account from which payments can be ordered by a depositor |
| closing entry | journal entries used to prepare temporary accounts for a new fiscal period |
| correcting entry | a journal entry made to fix an error in the ledger |
| customer | a person or business to whom merchandise or services are sold |
| dishonored check | A check that the bank refuses to pay |
| electronic funds transfer | a computerized cash payments system that uses electronic impulses to transfer funds |
| file maintenance | the procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current |
| fiscal period | the length of time for which a business summarizes and reports financial information |
| general ledger | a ledger that contains all accounts needed to prepare financial statements |
| income statement | a financial statement that shows the income and expenses for a fiscal period |
| invoice | a form describing the goods sold, the quantity and the price |
| ledger | a group of accounts |
| markup | the amount added to the cost of merchandise to establish the selling price |
| merchandise | goods that a merchandising business purchases to sell to customers |
| merchandising business | a business that purchases and sells goods |
| net income | the difference between total revenue and total expenses when total revenue is greater |
| opening an account | writing the name, name and opening balance into an account |
| net loss | the different between total revenue and total expenses when total expenses is greater |
| partner | each member of a partnership |
| partnership | a business in which two or more persons combine their assets and skills |
| permanent accounts | accounts used to accumulate information from one fiscal period to the next |
| post-closing trial balance | a trial balance prepared after the closing entries have been posted |
| postdated check | a check with a future date on it |
| petty cash | an amount of cash kept on hand for making small payments |
| purchase invoice | an invoice used for a purchase transaction |
| purchase on account | a purchase that will be paid for at a later date |
| restrictive endorsement | an endorsement that restricts the transfer of ownership of the check |
| sale on account | a sale for which cash will be received on a later date |
| sales invoice | an invoice used in a sales transaction |
| temporary accounts | accounts used to store information until transferred to the owner's capital account |
| trial balance | the proof of the equality of debits and credits in a general ledger |
| worksheet | a columnar accounting form used to summarize the general ledger information needed to prepare financial statement |
| vendor | person or business from whom merchandise is bought |
| Adjusting Entry for Supplie | Supplies Expense debit, Supplies credit |
| Closing entry for Revenue | Sales debit, Income Summary credit |
| Closing entry for drawing | Owner's Capital, debit, Drawing, debit |
| Entry to replenish petty cash | debit the expenses, credit cash |
| Entry to record bank service charge | Miscellaneous Expense Debit, Cash Credit |
| Paid cash for rent | Rent Expense Debit, Cash Credit |
| Paid cash for store supplies | Supplies--Store Debit, Cash Credit |
| Purchased merchandise on account | Purchases, Debit, Account Payable Credit |
| What kinds of accounts are listed in the Income Statement | Revenue, Expenses |
| What kinds of accounts are listed in the Balance Sheet? | Assets, Liabilities, Owner's Equity |
| Paid cash on account | Account Payable, Debit; Cash Credit |
| Bought supplies on account | Supplies, Debit: Account Payable, Credit |
| Recorded cash and credit card sales | Cash, Debit; Sales, Credit; Sales Tax Payable, Credit |
| Partner withdrew cash for personal use | Drawing, Debit; Cash, Credit |
| Sold merchandise on account | Accounts Receivable, Debit; Sales, Credit; Sales Tax Payable, Credit |
| Paid cash for telephone bill | Utilities Expense, Debit; Cash, Credit |
| Received cash on account | Cash, Debit; Accounts Receivable, Credit |
| Purchased merchandise for cash | Purchases, Debit; Cash, Credit |
| Adjusting entry for Prepaid Insurance | Insurance Expense, Debit; Prepaid Insurance, Credit |
| employee earnings record | an employee's earning and deductions for each pay period are summarized on one line of the employee earnings record |
| Medicare | a federal tax paid for hospital insurance |
| merchandising business | a business that purchases and sells goods |
| net pay | The total earnings paid to an employee after payroll taxes and other deduction are subtracted |
| opening an account | writing an account title and number on the heading of an account |
| payroll | the total amount owed by all employees for a pay period |
| payroll register | a business form used a record payroll information |
| payroll taxes | taxes based on the payroll of a business |
| petty cash | an amount of cash kept on hand for maing small payments |
| postdated check | a check with a future date on it |
| restrictive endorsement | an endorsement restricting further transfer of a check's ownership |
| salary | the money paid for employee services |
| sales | revenue amount that increase owner's equity |
| sales invoice | an invoice used as a source document for recording a sale on account |
| social security tax | a federal tax paid for old-age, survivors, and disability insurance |
| special journals | journals used to record only one kind of transaction |
| tax base | the maximum amount of earnings on which a tax is calculated |
| total earnings | the total pay due for a pay period before deductions |
| withholding allowance | a deduction from total earnings for each person legally supported by a taxpayer |
| trial balance | a proof of equality of debit and credits in a general ledger |
