Matching Pairs Accounting Vocab Semester Final Practice (Ch. 1-8)Online version Review for Semester Final by Andy Klepper 1 The principles of right and wrong that guide an individual in making decisions. 2 The difference between assets and liabilities. 3 Anything of value that is owned. 4 The difference between personal assets and personal liabilities. 5 Financial reports that summarize the financial condition and operations of a business. 6 The process of planning, recording, analyzing, and interpreting financial information. 7 A business owned by one person. 8 A planned process designed to compile financial data and summarize the results in accounting records and reports. 9 A formal report that shows what an individual owns, what an individual owes, and the difference between the two. 10 An amount owed. Equity Net Worth Statement Asset Personal Net Worth Liability Accounting Financial Statements Accounting System Ethics Proprietorship 1 The use of ethics in making business decisions. 2 A formal written document that describes the nature of a business and how it will operate. 3 An equation showing the relationship among assets, liabilities, and owner’s equity. 4 A business that performs an activity for a fee. 5 Any business activity that changes assets, liabilities, or owner’s equity. 6 The standards and rules that accountants follow while recording and reporting financial activities. 7 A record that summarizes all the transactions pertaining to a single item in the accounting equation. 8 The name given to an account. 9 The amount remaining after the value of all liabilities is subtracted from the value of all assets. 10 Financial rights to the assets of a business. Transaction Equities Account GAAP Service Business Business Ethics Business Plan Account Title Accounting Equation Owner's Equity 1 The cost of goods or services used to operate a business. 2 Assets taken from the business for the owner’s personal use. 3 The difference between the increases and decreases in an account. 4 An amount recorded on the right side of an account. 5 An account used to summarize the owner’s equity in a business. 6 An increase in equity resulting from the sale of goods or services. 7 A sale for which payment will be received at a later date. 8 An amount recorded on the left side of an account. 9 An accounting device used to analyze transactions. 10 A person or business to whom a liability is owed. Sale on Account Capital Account Expense Credit Debit Account Balance Withdrawals Creditor Revenue T Account 1 A business paper from which information is obtained for a journal entry. 2 The recording of debit and credit parts of a transaction. 3 Information for each transaction recorded in a journal. 4 A business form ordering a bank to pay cash from a bank account. 5 Amounts to be received in the future due to the sale of goods or services. 6 The side of an account that is increased is called the normal balance of the account. 7 Recording transactions in a journal. 8 A form for recording transactions in chronological order. 9 Amounts to be paid in the future for goods or services already acquired. 10 A list of accounts used by a business. Accounts Receivable Normal Balance Source Document Journalizing Check Accounts Payable Double-Entry Accounting Chart of Accounts Entry Journal 1 A business form giving written acknowledgement for cash received. 2 Determining that the amount of cash agrees with the accounting records. 3 The number assigned to an account. 4 The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. 5 A form on which a brief message is written to describe a transaction. 6 An invoice used as a source document for recording a sale on account. 7 A form describing the goods or services sold, the quantity, the price, and the terms of sale. 8 A group of accounts. 9 Writing an account title and number on the heading of an account. 10 A ledger that contains all accounts needed to prepare financial statements. Receipt Opening an Account General Ledger Account Number Ledger Sales Invoice Proving Cash Invoice Memorandum File Maintenance 1 An endorsement consisting only of the endorser’s signature. 2 A signature or stamp on the back of a check transferring ownership. 3 When the incorrect journal entry should be corrected with an additional journal entry 4 A bank account from which payments can be ordered by a depositor. 5 A check with a future date on it. 6 A bank form which lists the checks, currency, and coins an account holder is adding to a bank account. 7 A check that cannot be processed because the maker has made it invalid. 8 Transferring information from a journal entry to a ledger account. 9 An endorsement restricting further transfer of a check’s ownership. 10 An endorsement indicating a new owner of a check. Special Endorsement Endorsement Blank Endorsement Voided Check Checking Account Postdated Check Restrictive Endorsement Deposit Slip Correcting Entry Posting 1 A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents. 2 An amount of cash kept on hand and used for making small payments. 3 A petty cash on hand amount that is more than the recorded amount. 4 A form showing proof of a petty cash payment. 5 A report of deposits, withdrawals, and bank balances sent to a depositor by a bank. 6 A check dishonored by the bank because of insufficient funds in the account of the maker of the check. 7 A check which has been paid by the bank. 8 A check that a bank refuses to pay. 9 A petty cash on hand amount that is less than the recorded amount. 10 A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder. Debit Card Cash Over Petty Cash Slip Canceled Check NSF Check Bank Statement Cash Short Petty Cash Electronic Funds Transfer Dishonored Check 1 A financial statement that reports assets, liabilities, and owner’s equity on a specific date. 2 Reporting income when earned and expenses when incurred. 3 A fiscal period consisting of 12 consecutive months. 4 Cash paid for an expense in one fiscal period that is not used until a later period. 5 Reporting income when the cash is received and expenses when the cash is paid. 6 A proof of the equality of debits and credits in a general ledger. 7 A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. 8 The length of time for which a business summarizes its financial information and reports its financial performance. 9 A financial statement showing the revenue and expenses for a fiscal period. 10 Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period. Cash Basis of Accounting Trial Balance Accrual Basis of Accounting Income Statement Fiscal Period Prepaid Expense Work Sheet Fiscal Year Adjustments Balance Sheet 1 A financial road map used by individuals and companies as a guide for spending and saving. 2 A comparison between two components of financial information. 3 Any persons or groups who will be affected by an action. 4 The difference between total revenue and total expenses when total revenue is greater. 5 A financial statement that reports the changes in the capital account for a proprietorship for a period of time 6 The area of accounting that focuses on reporting information to internal users. 7 Journal entries recorded to update general ledger accounts at the end of a fiscal period. 8 The area of accounting which focuses on reporting information to external users. 9 The ratio of net income to total sales. 10 The difference between total revenue and total expenses when total revenue is greater. Adjusting Entries Financial Accounting Statement of Owner's Equity Financial Ratio Managerial Accounting Net Loss Return on Sales (ROS) Net Income Stakeholders Budget 1 The series of accounting activities included in recording financial information for a fiscal period. 2 A trial balance prepared after the closing entries are posted. 3 Financial statements providing information for a time period shorter than the fiscal year. 4 A positive balance that remains after total expenses are subtracted from total income. 5 A negative balance that remains after total expenses are subtracted from total income. 6 Accounts used to accumulate information from one fiscal period to the next. 7 Reporting an amount on a financial statement as a percentage of another item on the same financial statement. 8 The calculation and interpretation of a financial ratio. 9 Journal entries used to prepare temporary accounts for a new fiscal period. Deficit Surplus Post-Closing Trial Balance Vertical Analysis Permanent Accounts Interim Financial Statements Accounting Cycle Ratio Analysis Closing Entries
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