| A | B |
|---|
| Netflix | world’s first Internet store to offer DVD rentals |
| ledger | a group of accounts |
| general ledger | a ledger that contains all accounts needed to prepare financial statements |
| account number | the number assigned to an account |
| file maintenance | ”the procedure for arranging accounts in a general ledger |
| opening an account | writing an account title and number on the heading of an account |
| customary system | ”a system of measurement used in the United States that uses inches |
| metric system | ”a system of measurement based on the decimal system with units in centimeters |
| posting | transferring information from a journal entry to a ledger account |
| proving cash | determining that the amount of cash agrees with the balance of the Cash account in the accounting records |
| correcting entry | a journal entry that is used to correct an incorrect entry |
| skimming sales | a type of business fraud in which the money taken from the customer could go in the employee’s pocket rather than the cash register |
| ethics | principles of right and wring that guide an individual in making decisions |
| Objective Evidence | ”an accounting concept stating that every transaction must have a source document |
| Realization of Revenue | an accounting concept stating that revenue is recorded at the time goods or services are sold |
| GAAP | Generally Acceptable Accounting Principles serves as a guide for reporting and interpreting accounting information which includes the accounting concepts illustrated in the accounting class |
| IASB | International Accounting Standards Board is responsible for the development and publication of International Financial Reporting Standards |
| IFRS | International Financial Reporting Standards an organization responsible for setting the GAAP financial accounting standards |
| AICPA | American Institute of Certified Public Accountants |
| Marcus Aurelius quote | ”A man should be upright |
| Chart of Accounts | a list of accounts used by a business |
| asset | anything of value that is owned |
| liability | an amount owed |
| owner’s equity | the amount remaining after the value of all liabilities is subtracted from the value of all assets |
| accounting equation | assets equals liabilities plus owner’s equity |
