| A | B |
|---|
| plant assets | Assets which will be used for a number of years in the operation of a business. |
| schedule of accounts payable | A listing of vendor accounts, account balances, and total amount due all vendors. |
| closing entries | Journal entries used to prepare tempoary accounts for a new fiscal period. |
| accounting cycle | The series of accounting activities included in recording financial information for a fiscal period. |
| schedule of accounts receivable | A listing of customer accounts, account balances, and total amount due from all customers. |
| gross profit method of estimating an inventory | Estimating inventory by using the previous year's percentage of gross profit on operations. |
| departmental statement of gross profit | A statement prepared at the end of a fiscal period of gross profit showing the gross profit for each department. |
| periodic inventory | Merchandise inventory determined by counting, weighing, or measuing items of merchandise on hand. |
| component percentage | The percentage of relationship bewteen one financial staement item and the total that includes that item. |
| income statement | A financial statement showing the revenue and expenses for a fiscal period. |
| retained earnings | An amount earned by a corporation and net yet distributed to stockholders. |
| adjusting entries | Journal entries recorded to update general ledger accounts at the end of a fiscal period. |
| statement of stockholders' equity | A financial statement that shows changes in a corporation's ownership for a fiscal period. |
| perpetual inventory | Merchandise inventory determined by keeping a continuous record of increases, decreases, and balance on hand. |
| balance sheet | A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
| depreciation expense | The portionof a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life. |
| post-closing trial balance | A trial balance prepared after closing entries are posted. |
| dividends | Earnings distributed to stockholders. |
| fiscal period | The length of time for which a business summarizes and reports financial information. |
| capital stock | The total shares of ownership in a corporation. |
| trial balance | a proof of the equality of debits and credits in a general ledger |
| work sheet | a columnar accounting form used to summarize the general ledger information needed to prepare financial statements |
| departmental margin | the revenue earned by a department less its cost of merchandise sold and less its direct expenses |
| departmental margin statement | a statement that reports departmental margin for a specific department |
| direct expense | an operating expense identifiable with and chargeable to the operation of a specific department |
| gross profit | amount of revenue from sales less the cost of goods sold |
| indirect expense | an operating expense chargeable to overall business operations and not identifiable with a specific department |
| responsibility accounting | assigning control of business revenues, costs, and expenses as a responsibility of a specific manager |
| responsibility statements | financial statements reporting revenue, costs, and direct expenses under a specific department’s control |
