Accounting I
Chapters 1-8
Vocabulary Review
The amount in an account.
business ethics
account balance
debit
A record summarizing all
the information
pertaining to a single
item in the accounting
equation.
expense
account
receipt
The name given to an account.
chart of accounts
liability
account title
Planning, recording,
analyzing, and interpreting
financial information.
double-entry accounting
memorandum
accounting
An equation showing the
relationship among assets,
liabilities, and owner’s equity.
accounting equation
 normal balance
chart of accounts
Organized summaries of a
business’s financial activities.
transaction
accounting records
financial statements
A planned process for providing
financial information that will
be useful to management.
accounting system
invoice
memorandum
The account used to
summarize the owner’s
equity in a business.
capital
asset
T account
Anything of value that is owned.
liability
asset
owner’s equity
A decrease in owner’s equity
resulting from the operation of
a business.
expense
withdrawals
owner’s equity
The use of ethics in making
business decisions.
business ethics
normal balance
journalizing
Financial rights to the assets of
a business.
sales invoice
sale on account
equities
Financial reports that
summarize the financial
condition and operations of a
business.
receipt
financial statements
journalizing
An amount owed by a business.
debit
 liability
invoice
The amount remaining after the
value of all liabilities is
subtracted from the value of all
assets.
special amount column
normal balance
credit balance
A business that performs
an activity for a fee.
credit
service business
Non-profit organization
A business owned by one
person.
proprietorship
 T account
cooperation
An increase in owner’s equity
resulting from the operation of
a business.
journalizing
revenue
ethics
A sale for which cash will be
received at a later date.
sale on account
expense
proving cash
A business activity that changes
assets, liabilities, or owner’s
equity.
withdrawals
double-entry accounting
transaction
Assets taken out of a business
for the owner’s personal use.
financial statements
withdrawals
deposits
The principles of right and
wrong that guide an individual
in making decisions.
financial statements
general amount column
ethics
The side of the account that is
increased.
normal balance
credit balance
debit balance
A list of accounts used by a
business.
chart of accounts
debit
sales invoice
An amount recorded on the right
side of a T account.
debit
deposit
credit
An amount recorded on the left
side of a T account.
credit
debit
account balance
An accounting device used to
analyze transactions.
special amount column
T account
source document
A business form ordering a bank
to pay cash from a bank
account.
deposit slip
memo
check
Determining that the amount of
cash agrees with the
accounting records.
proprietorship
proving cash
credit
A journal amount column that is
not headed with an account
title.
chart of accounts
general amount column
special amount column
The recording of debit and
credit parts of a transaction.
double-entry accounting
proving cash
accounting
A form for recording
transactions in chronological
order.
checkbook
source document
journal
Recording transactions in a
journal.
correcting
journalizing
double-entry accounting
A form on which a brief message
is written describing a
transaction.
memorandum
invoice
sales invoice
A journal amount column
headed with an account title.
T-account
normal balance
special amount column
A business form giving written
acknowledgement for cash
received.
normal balance
check
receipt
A business paper from which
information is obtained for a
journal entry.
transaction
source document
memo
The number assigned to an
account.
chart of accounts
account number
check number
An additional journal entry, used
to correct an incorrect journal
entry.
transaction
general journal entry
correcting entry
A ledger that contains all
accounts needed to prepare
financial statements.
general ledger
general journal
work sheet
Transferring information from a
journal entry to a ledger
account.
adjusting an entry
posting
proving cash
A report of deposits,
withdrawals, and bank
balances sent to a depositor
by a bank.
bank statement
deposit slip
check
An endorsement consisting only
of the endorser’s signature.
full endorsement
blank endorsement
special endorsement
A bank card that automatically
deducts the amount of a
purchase from the checking
account of the cardholder.
debit card
birthday card
gift card
A check that a bank refuses to
pay.
dishonored check
certified check
paycheck
An amount of cash kept on
hand and used for making
small payments.
checking account balance
petty cash
piggy bank cash
A check with a future date on it.
postdated check
dishonored check
blank check
Changes recorded on a work sheet
to update general ledger accounts
at the end of a fiscal period.
adjustments
transactions
closing entries
A financial statement that reports
assets, liabilities, and owner’s
equity on a specific date.
worksheet
balance sheet
income statement
The length of time for which a
business summarizes and reports
financial information.
born on date
accounting period
fiscal period
A financial statement showing the
revenue and expenses for a fiscal
period.
post-closing trial balance
general ledger
income statement
The difference between total
revenue and total expenses when
total revenue is greater.
net loss
net income
neither
The difference between total
revenue and total expenses
when total expenses are greater.
net income
net loss
neither
A proof of the equality of debits
and credits in a general ledger.
trial balance
worksheet
post-closing trial balance
A columnar accounting form used
to summarize the general ledger
information needed to prepare
financial statements.
general journal
general ledger
worksheet
Any persons or groups who will be
affected by an action.
CPA’s
stakeholders
steakholders
The series of accounting activities
included in recording financial
information for a fiscal period.
fiscal period
accounting cycle
post-closing cycle
Journal entries recorded to
update general ledger accounts
at the end of a fiscal period.
closing entries
adjusting entries
journal entries
Journal entries used to prepare
temporary accounts for a new
fiscal period.
closing entries
transactions
journal entries
Accounts used to accumulate
information from one fiscal
period to the next.
permanent accounts
temporary accounts
neither
Accounts used to accumulate
information until it is transferred
to the owner’s capital account.
closing entries
temporary accounts
permanent accounts
CORRECT!!!!
SORRY!!
WRONG!