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| balance sheet | After all the closing entries are posted, the ______ accounts are the only general ledger accounts that have balances. |
| Retained Earnings | The Income Summary account is closed into the _________ account. |
| corporation | An organization with the legal rights of a person and which many person may own. |
| income statement | An ________ is used to report a business's financial progress |
| Capital Stock | Total shares of ownership in a corporation. |
| cost of merchandise | The price a business pays for goods it purchases to sell. |
| vendor | A business from which merchandise is purchased or supplies or other assets are bought. |
| purchase on account | A transaction in which the merchandise purchased is to be paid for later. |
| purchase invoice | An invoice used as a source document for recording a purchase on account transaction. |
| cash payments | A special journal used to record only cash payment transactions. |
| cash discount | A deduction that a vendor allows on the invoice amount to encourage prompt payment. |
| contra account | An account that reduces a related account on a financial statement. |
| purchase journal | A special journal used to record only purchases of merchandise on account is called a *. |
| sales journal | A special journal used to record only sales of merchandise on account. |
| cash receipts journal | A special journal used to record only cash receipt transactions. |
| subsidiary ledger | A ledger that is summarized in a single general ledger account. |
| accounts payable ledger | A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account. |
| accounts receivable ledger | A subsidiary ledger containing only accounts for charge customers. |
| controlling account | An account in a general ledger that summarizes all accounts in a subsidiary ledger. |
| Posting | _____ frequently keeps each vendor account balance up to date. |
| Sales Journal | The journal that should be posted first is the _____. |
| checkmark | A ________ is placed in parentheses below the General Debit and General Credit column totals in the journal to indicate that the two column totals are not posted. |
| salary | The money paid for employee services. |
| payroll | The total amount earned by all employees for a pay period. |
| withholding allowance | A deduction from total earnings for each person legally supported by a taxpayer, including the employee. |
| social security tax | A federal tax paid for old-age, survivors, and disability insurance. |
| Medicare tax | A federal tax paid for hospital insurance. |
| payroll register | A business form used to record payroll information. |
| net pay | The total earnings paid to an employee after payroll taxes and other deductions. |
| expenses | Employer business taxes are ___. |
| social security and Medicare | Payroll taxes that are paid by both the employer and the employee are _____. |
| federal unemployment taxes | A federal tax used for state and federal administrative expenses of the unemployment program is the ____. |
| merchandise inventory | The amount of goods on hand for sale to customers is called ___. |
| Matching Expenses with Revenue | Recording expenses in the accounting period in which the expenses contribute to earning revenue is an application of the accounting concept ___. |
| liability | A declared dividend is classified as an _____. |
| worksheet | The purpose of a ______ is to plan adjustments and summarize the information necessary to prepare financial statements. |
| plant assets | Assets that will be used for a number of years in the operation of a business are called ______. |
| accumulated depreciation | _______ is the depreciation expense that has been recorded since the purchase of a plant asset. |
| net sales | Total sales less sales discount and sales returns and allowances. |
| statement of stockholder's equity | A financial statement that shows changes in a corporation's ownership for a fiscal period. |
| current liabilities | Liabilities due within a short time, usually within a year. |
| long-term liabilities | Liabilities owed for more than a year. |
| share of stock | Each unit of ownership in a corporation. |
| post-closing trial balance | The purpose of the ________ is to prove the general ledger equality of debits and credits. |
| temporary accounts | ____ are closed at the end of a fiscal period to prepare the general ledger for the next fiscal period. |
