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NBE/MO Funeral Service State Board Exams > Accounting > Flashcards

Accounting Flashcards

1
Q

Wage

A

A form of compensation for skilled and unskilled labor, expressed in terms of hours, weeks or pieces completed

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2
Q

W-4 Form

A

Employee’s withholding allowance certificate

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3
Q

W-2 Form

A

Wage and tax statement; a report furnished by employer for each employee indicating gross earnings and deductions

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4
Q

Useful Life

A

The estimated determinable life of a fixed asset

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5
Q

I.C.F

A

Uncollectible funds

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6
Q

Trial Balance

A

A work paper proving the equality of the debit and credit balances in the ledger

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7
Q

Transposition Error

A

An amount written with the digits in incorrect order

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8
Q

Transaction Analysis

A

The effect of business activities in the accounting elements

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9
Q

Transaction

A

Any activity if a business enterprise that involves the exchange of values

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10
Q

Term of Note/Time

A

The period of time from the date of the note to the maturity date

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11
Q

Temporary Owner’s Equity Accounts

A

Accounts utilized to accumulated income, expenses, and owners withdrawals for one accounting period only

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12
Q

Tangible assets

A

Those assets that can be appraised by value or seen or touched

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13
Q

T-Account

A

A skeleton form of an account used for instructional purposes

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14
Q

S.U.T.A

A

State Unemployment Tax Act

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15
Q

Supplies

A

A type of asset that will be consumed as it is used
Ex. Office supplies

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16
Q

Summarizing

A

Bring accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements

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17
Q

Straight Line Depreciation

A

A method in which the depreciable cost basis (original cost basis salvage value) is an asset is apportioned equally over its estimated useful Life expressed in terms of month or years

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18
Q

Stop Payment Order

A

An order by a depositor requesting a bank not to pay on a check previously issued

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19
Q

Statement of Owner’s Equity/Net Worth

A

A formal financial statement which summarizes all of the changes in owners equity during a specified period of time

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20
Q

Statement of Account

A

A report sent to each customer, usually at the end of the month,which indicates the status of his or her account

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21
Q

Salvage Value

A

The estimated value of a fixed asset at the end of its useful Life

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22
Q

Sales returns and allowances

A

A temporary owners equity contra sales account used to record credit given to a customer for shortages or damaged goods

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23
Q

Sales Invoice

A

A source document prepared by the seller that lists the items shipped, their cost and the method of shipment form the sellers viewpoint

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24
Q

Sales discounts

A

A temporary owner’s equity contra sales account used to record discounts given to customers as an incentive for prompt payment

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25
Q

Sales

A

A temporary owners owners equity account used to record the earning of revenue

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26
Q

Salary

A

Are generally considered to be compensation for managerial or administrative services, expressed in terms of a month or year

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27
Q

Retail Sales Tax

A

A tax imposed on tangible personal property sold at retail

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28
Q

Rate

A

The annual percentage rate used to compute interest

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29
Q

Quick Assets

A

Cash, marketable, securities, accounts, and notes receivable

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30
Q

Quarterly

A

A three month period

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31
Q

Purchases Returns and Allowances

A

A temporary owner’s equity contra purchases account utilized to record the return of merchandise to manufacture or supplier as the result of material defects in workmanship and/or inferior product quality

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32
Q

Purchases Discounts

A

A temporary owner’s equity contra purchases account used to record discounts taken in inventory purchases; the amount of any discounts granted by suppliers to encourage prompt payment of their invoices

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33
Q

Purchases

A

A temporary owner’s equity account used to record the buying of merchandise for resale

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34
Q

Purchase Requisition

A

A form used to request the responsible person or department to purchase merchandise or other property

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35
Q

Purchase Order

A

A written order by a buyer for merchandise or other property specified in the purchase requisition

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36
Q

Purchase Invoice

A

A source document prepared by the seller listing the items shipped, their cost and the method of payment (from the buyer’s viewpoint)

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37
Q

Proving Cash

A

The process of determining whether the amount of cash, both on hand and in the bank, is the same as that which is indicated in the accounting records

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38
Q

Promissory Note

A

A written promise made by a person or business to pay a certain sum of money to another person or business at a specified time in the future

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39
Q

Profit Margin

A

Net income divided by net sales

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40
Q

profitability analysis

A

Provides evidence concerning the earning potential of a company and how effectively the firm is being managed

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41
Q

Principal

A

The face value of a promissory note upon which interest is computed

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42
Q

Prepaid Expenses

A

Items which are considered to be assets when acquired, but church become expenses when consumed or expired

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43
Q

Posting

A

The transferral of data from the journal to the ledger

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44
Q

Post dated Check

A

A check dates subsequent to (following) it’s date of issuance

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45
Q

Post-closing trial Balance

A

A work paper prepared after all temporary owners equity of the debits and credits

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46
Q

Petty Cash Voucher

A

A form used to reflect payments from the petty cash fund

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47
Q

Petty cash fund

A

A fund of currency and coin established for the payment of small amounts of money

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48
Q

Permanent accounts

A

Accounts, that accumulate information across accounting periods; all accounts reported on the balance sheet

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49
Q

Overdraft

A

The issuance of a check without sufficient funds in the account when it is presented for payment

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50
Q

Outstanding checks

A

Checks that have been drawn in subtracted from the depositors checkbook, but which have not yet been presented to the bank for payment

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51
Q

Other income

A

Income received, that is not the direct result of regular trading activities of a business

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52
Q

Original cost basis

A

The amount originally paid for depreciable asset

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53
Q

Note payable

A

A written promise to pay a creditor, a certain amount in the future

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54
Q

Notes receivable

A

A written promise of a customer to pay the business a sum of money at a future time

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55
Q

NSF

A

Not sufficient funds

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56
Q

Net purchases

A

Purchases minus purchase returns and allowances minus purchase discounts

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57
Q

Net loss

A

The difference between gross profit and expenses, when expenses are higher

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58
Q

Net income/net profit

A

The difference between gross profit and expenses, when gross profit is larger

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59
Q

Net earnings/net pay/take home pay

A

Gross pay less payroll deductions; an employees take home pay

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60
Q

Mortgage payable

A

A long-term liability; a written promise that pledges real property as security for payment of a debt

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61
Q

Maturity date

A

The dates on which payment is due on a promissory note

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62
Q

Liquidity analysis

A

And analysis that measures the ability of the firm to meet its current obligations

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63
Q

Liabilities

A

Any dates that a business owes

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64
Q

Ledger

A

A book of accounts, in which data from transactions recorded in journals are posted and thereby summarized

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65
Q

Journalizing

A

The process of recording business transactions in a book of original entry

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66
Q

Journal

A

Any book of original entry

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67
Q

Invoice

A

A source document, showing quantity, description, prices of items, total amount of purchase, and the terms of payment

68
Q

Average inventory

A

(Beginning inventory plus ending inventory)/2

69
Q

Inventory turnover

A

The number of times the average in inventory has been sold or used up/turned over during the period
Calculation: cost of good sold for period/average inventory

70
Q

Inventory/merchandise

A

Good purchased for resale at a profit

71
Q

Interpreting

A

Explaining the significant events of developments that occur, usually taking the form of analysis and comparisons

72
Q

Interest

A

Money paid for the use of money

73
Q

Intangible assets

A

Those assets that cannot be touched or grasped
(patents, copyrights, and Goodwill)

74
Q

Independent contractor

A

Any person who agrees to perform a service for a fee, and who is not subject to the control of those for whom the service is performed

75
Q

Income tax

A

A tax levied on the earnings of individuals and businesses, by federal, state, and other local governments

76
Q

Income statement comparative forms

A

Record the income statement data for two or more comparable periods of the same form so that the information can be readily compared

77
Q

Income statement, common

A

Size statements/percent period
Express the major terms in the income statement as a percent of net sales, and compare with previous fiscal periods

78
Q

Income/revenue

A

An inflow of assets as a result of selling a product or providing a service

79
Q

Income statement

A

Profit and loss statement; statement of operations; operating statement
- A formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period

80
Q

In balance

A

A condition in which the total of the debit and a total of the credits are equal in an account

81
Q

Gross profit percentage

A

Gross profit divided by net sales

82
Q

Gross margin/gross profit

A

Net sales minus the cost of goods sold

83
Q

Gross earnings/gross pay

A

Income before any deductions have been made

84
Q

General ledger

A

The book of accounts

85
Q

General Journal

A

A book of original entry in which any business transactions is recorded in chronological order

86
Q

FUTA

A

Financial unemployment tax act
- A federal act imposed upon each employer for financing, the administration cost of the federal and state unemployment compensation programs

87
Q

Fixed liabilities/long-term liabilities

A

Liabilities that are not due and payable within one year

88
Q

Fixed assets/long-term assets

A

Property of a relatively permanent nature, used in the operation of a business and not intended for resale
Land, building, equipment

89
Q

Fiscal Period.

A

A period of time covered by an income statement

90
Q

FICA

A

Federal insurance contributions act
- A federal act requires most employers and employees to pay taxes to support the federal Social Security program

91
Q

Federal income tax withholding

A

The amount that an employer must withhold from an employees pay for income tax purposes

92
Q

Face of note

A

The personal some the employer of a note promises to pay

93
Q

Expenses

A

A decrease in assets, other than withdrawals by the owner, which result from efforts to produce revenue

94
Q

EOM

A

End of the month

95
Q

Employee

A

One who’s under the control and direction of an employer, with regard to the performance of employment

96
Q

Drawing account/owner withdrawals

A

Hey, separate owners equity account, in which withdrawals of cash or other assets by the owner for personal use are recorded

97
Q

Double entry bookkeeping/double entry accounting

A

The process of recording, equal debits and credits for a single business transaction

98
Q

Dishonored check

A

Hey, chick not paid by the bank when properly presented

99
Q

Discount period

A

Specific number of days during which a discount is available if the account is paid

100
Q

Disbursement

A

A payment

101
Q

Depreciation expense

A

That portion of the original cost of a fixed asset that is assigned as an expense to the reporting. Expected to benefit from its use.

102
Q

Depreciation

A

The loss of value of a fixed asset, due to wear and tear and the passage of time; or a method of matching, the cost of a fixed asset against the revenues that fixed asset will help produce during it’s useful life

103
Q

Deposit slip/deposit ticket

A

A bank form that list those cash items currency in coin and individual checks to be deposited

104
Q

Deposits in transit

A

Deposits, they have been made an edit to depositors checkbook, but not yet been listed on the bank statement

105
Q

Debtor

A

The business or individual who owes a debt

106
Q

Debit memorandum

A

Items the bank deduct from the account balance

107
Q

Debit balance

A

A condition that occurs when the total of the debits in the account is larger than the total of the credits in that account

108
Q

Debit

A

The left side of a standard account
Abbreviation: DR

109
Q

Data entry/recording

A

The committing of a business transaction and the events surrounding such into writing

110
Q

Current liabilities

A

Death of a business that are generally paid within one year

111
Q

Current assets

A

Cash of other assets that will be converted into cash or consumed within one year

112
Q

Current ratio

A

Current assets, divided by current liabilities

113
Q

Creditor

A

A business or individual to whom it is owed

114
Q

Credit memorandum

A

A source document that grants credit to a buyer for purchase return or purchase allowance; items the bank add to the account balance

115
Q

Credit balance

A

A condition that occurs when the total of the credits in account is larger than the total of the debit in that account

116
Q

Credit

A

The right side of a standard account
Abbreviation: CR

117
Q

Contra account

A

An account designed to accumulate totals to offset a related account

118
Q

Compound journal entry

A

In accounting entries that involves more than two accounts

119
Q

Closing entries

A

Entries made at the end of each reporting period to transfer the balance of the temporary owners equity’s accounts to the permanent owners equity account into reduce the balance in the temporary owners equity accounts to zero in preparation for the next accounting period

120
Q

Classifying

A

The sorting of the mini business transactions in an orderly and systematic manner

121
Q

Chronological

A

In accounting, to record in order of time

122
Q

Check stub

A

A form on which information is recorded by the driver of a check concerning the check drawn; a source document

123
Q

Checks

A

A piece of commercial paper drawn on sons in a bank account and Payable on-demand

124
Q

Chart of accounts

A

A list of all the account titles in the account numbers assigned to them

125
Q

Certified public accountant/CPA

A

An individual possessing a college education, having practical experience in accounting, and who has passed a comprehensive stay examination in order to be certified to practice public accounting in that state

126
Q

Cash short and over

A

A special ledger account that is used to keep track of unexplained, shortages or overages of cash

127
Q

Cash disbursements/cash payments

A

Money and money substitutes paid

128
Q

Cash discounts

A

Discounts from quoted prices, as in inducement for prompt payment of invoices

129
Q

Cash basis, accounting

A

In accounting practice, in which revenue is not recognized in the accounting records until received, and in which expenses are not recognized until paid

130
Q

Cash

A

Coins, currency, paper, money, checks, credit card, receipts, and money orders received from others, as well as money deposited in the bank

131
Q

Capital/net worth/owners equity/proprietorship

A

The amount by which the total assets exceed the total liabilities of a business; and owners financial interest in a business

132
Q

Cancelled check

A

A check which has been paid by the bank and returned to the drawer for recordkeeping

133
Q

Calendar year

A

A 12 month period beginning January 1 and concluding on December 31

134
Q

Business papers/source documents

A

The first record of a business transaction, such as check, stubs, receipts, sales, invoices, purchase invoices, cash register tapes, etc.

135
Q

Book value/undepreciated cost

A

The cost of a fixed asset less it’s accumulated depreciation

136
Q

Bookkeeping

A

The recording of financial information in a prescribed manner

137
Q

Bookkeeper/information processor

A

One who is involved in the process of recording financial information in a prescribed manner

138
Q

Bank statement reconciliation

A

The process by which the depositor attempt to reconcile the bank statement, balance with the checkbook balance

139
Q

Bank statement

A

An itemized listing, prepared by the bank of additions to the subtractions from a depositors account

140
Q

Bankers metal/360 day

A

A method of competing interest based on the assumption that there are 360 days in a year

141
Q

Balance sheet comparative forms

A

Record the balance sheet data for two or more comparable periods on the same form so that the information can be readily compared.

142
Q

Balance sheet common

A

Size statements/ period Method.
Xpress the major items in the balance sheet as a percent of the total assets, and compare with the previous fiscal periods

143
Q

Balance sheet/statement of financial position/statement of financial condition

A

A formal financial statement, illustrating the assets, liabilities, and owners equity of a business as of a specific date

144
Q

Bad debts expense, uncollectible accounts expense/loss from uncollectible accounts

A

Accounts receivable that are uncollectible

145
Q

Assets

A

Property of monetary value owned by business

146
Q

Allowance for bad debts/allowance for doubtful accounts

A

A contra asset account utilized to accumulate totals against accounts receivable

147
Q

Age of inventory

A

Measures the average time required to sell inventory
Calculation: 365 days/inventory turnover

148
Q

Age of accounts receivable

A

Measures the average time required to collect receivables
Calculation: 365 days/accounts receivable turnover

149
Q

Adjusting entries

A

Injuries made at the conclusion of a fiscal period to bring accounts up-to-date

150
Q

Adjusted trial balance

A

A trial balance taken after adjusting entries has been recorded

151
Q

Activity analysis

A

Measures how efficiently a firm is utilizing is assets

152
Q

Acid test ratio/quick ratio

A

Quick assets/current liabilities

153
Q

Accrued income

A

Income actually earn during an accounting. But which will not be received until a future period

154
Q

Accrued expense

A

Expenses include in, operating a business during an accounting period, but not yet paid

155
Q

Accrual accounting

A

Recording in each fiscal period Applicable expenses, whether paid or not, and income earned, whether collected or not.

156
Q

Average accounts receivable

A

(Beginning accounts receivable + ending accounts receivable)/2

157
Q

Accounts receivable turnover

A

Measures how many times per year receivables are collected
-Calculation: net credit sales/average accounts receivable

158
Q

Accounts receivable

A

An unwritten promise by a customer to pay, at a later time, for goods sold, or services rendered

159
Q

Accounting equation

A

Assets= liabilities + owners equity

160
Q

Accounting cycle

A

The process involved in journaling, posting to the ledger, taking a trial, balance, preparing accounts, making adjusting and closing entries, and preparing a post closing trial balance

161
Q

Accounting

A

A language of business employee to communicate financial information, based upon analyzing, recording, classification, summarization, recording, and interpretation of financial data

162
Q

Accountant

A

One who is concerned with the design of the system of records, the preparation of records, based upon the recording data, and the interpretation of the records

163
Q

Account

A

A device for recording the changes (increases or decreases) in the fundamental accounting elements

164
Q

Account Balance

A

The difference between the total debits and the total credits in an account

165
Q

Accounts Payable

A

An unwritten promise to pay creditors for property, such as merchandise, supplies, or equipment, purchased on credit, or for services received on credit

166
Q

Net Sales

A

Sales - sales returns and allowances - sales discounts

NBE/MO Funeral Service State Board Exams (24 decks)

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