Accounting Compend- Matching Flashcards
Used for recording sale of merchandise on credit:a) Sales Journalb) General Journalc) Purchases Journald) Cash Payments Journale) Cash Receipts Journal
Sales Journal
Used for all types of business transactions:a) Sales Journalb) General Journalc) Purchases Journald) Cash Payments Journale) Cash Receipts Journal
General Journal
Used to record the buying of merchandise on credit:a) Sales Journalb) General Journalc) Purchases Journald) Cash Payments Journale) Cash Receipts Journal
Purchases Journal
Used to record the receipt of cash:a) Sales Journalb) General Journalc) Purchases Journald) Cash Payments Journale) Cash Receipts Journal
Cash Receipts Journal
Used to record the paying of cash:a) Sales Journalb) General Journalc) Purchases Journald) Cash Payments Journale) Cash Receipts Journal
Cash Payments Journals
Accounts Payable is a:a) Current Assetb) Current Liabilityc) Fixed Assetd) Fixed Liabilitye) Proprietorship
Current Liability
Accounts Receivable is a:a) Current Assetb) Current Liabilityc) Fixed Assetd) Fixed Liabilitye) Proprietorship
Current Asset
Capital is a:a) Current Assetb) Current Liabilityc) Fixed Assetd) Fixed Liabilitye) Proprietorship
Proprietorship
Mortgage Payable is a:a) Current Assetb) Current Liabilityc) Fixed Assetd) Fixed Liabilitye) Proprietorship
Fixed Liability
Funeral Coach is a:a) Current Assetb) Current Liabilityc) Fixed Assetd) Fixed Liabilitye) Proprietorship
Fixed Asset
Difference between assets and liabilities:a) Balance Sheetb) Trial Balancec) Owners Equityd) Assetse) Liabilities
Owners Equity
Statement of financial condition:a) Balance Sheetb) Trial Balancec) Owners Equityd) Assetse) Liabilities
Balance Sheet
Things of value owned by a business:a) Balance Sheetb) Trial Balancec) Owners Equityd) Assetse) Liabilities
Assets
Debts that a business owes:a) Balance Sheetb) Trial Balancec) Owners Equityd) Assetse) Liabilities
Liabilities
Check the equality of debits and credits:a) Balance Sheetb) Trial Balancec) Owners Equityd) Assetse) Liabilities
Trial Balance
Recording information in a ledger:a) Journalb) Ledgerc) Postingd) Income Statemente) Balance Sheet
Posting
A book of accounts:a) Journalb) Ledgerc) Postingd) Income Statemente) Balance Sheet
Ledger
Book of original entry:a) Journalb) Ledgerc) Postingd) Income Statemente) Balance Sheet
Journal
Statement of assets, liabilities, and owners equity at a specific date:a) Journalb) Ledgerc) Postingd) Income Statemente) Balance Sheet
Balance Sheet
Statement of income, expenses, and net income or net loss for a period of time:a) Journalb) Ledgerc) Postingd) Income Statemente) Balance Sheet
Income Statement
Unwritten promises of a business to pay creditors:a) Assetsb) Liabilitiesc) Owners Equityd) Accounts Payablee) Accounts Receivable
Accounts Payable
Unwritten promises by customers to the business pay at a later date:a) Assetsb) Liabilitiesc) Owners Equityd) Accounts Payablee) Accounts Receivable
Accounts Receivable
Any debt that a business owes:a) Assetsb) Liabilitiesc) Owners Equityd) Accounts Payablee) Accounts Receivable
Liabilities
Properties of monetary value owned by a business:a) Assetsb) Liabilitiesc) Owners Equityd) Accounts Payablee) Accounts Receivable
Assets
An owner’s financial interest in a business:a) Assetsb) Liabilitiesc) Owners Equityd) Accounts Payablee) Accounts Receivable
Owners Equity
A book of original entry in which business transactions are recorded in chronological order:a) Salesb) Ledgerc) Journald) Purchasese) Principal
Journal
The buying of merchandise:a) Salesb) Ledgerc) Journald) Purchasese) Principal
Purchases
The face value of a note on which interest is computed:a) Salesb) Ledgerc) Journald) Purchasese) Principal
Principal
Ordinarily refers only to merchandise sold:a) Salesb) Ledgerc) Journald) Purchasese) Principal
Sales
A book of accounts:a) Salesb) Ledgerc) Journald) Purchasese) Principal
Ledger
Current assets divided by current liabilities:a) Debitb) Creditc) Current Ratiod) Notes Payablee) Notes Receivable
Current Ratio
A written promise of a customer to pay the business in sum of the money at a future date:a) Debitb) Creditc) Current Ratiod) Notes Payablee) Notes Receivable
Notes Receivable
The right side of a standard account:a) Debitb) Creditc) Current Ratiod) Notes Payablee) Notes Receivable
Credit
A written promise of a business to pay a creditor a certain amount in the future:a) Debitb) Creditc) Current Ratiod) Notes Payablee) Notes Receivable
Notes Payable
The left side of a standard account:a) Debitb) Creditc) Current Ratiod) Notes Payablee) Notes Receivable
Debit
Accounts receivable that are uncollectable:a) Costb) Suppliesc) Bad Debtsd) Cash Receiptse) Current Liabilities
Bad Debts
Amount paid by a business for merchandise:a) Costb) Suppliesc) Bad Debtsd) Cash Receiptse) Current Liabilities
Cost
Money and money substitutes received:a) Costb) Suppliesc) Bad Debtsd) Cash Receiptse) Current Liabilities
Cash Receipts
Debts that must be paid within a year:a) Costb) Suppliesc) Bad Debtsd) Cash Receiptse) Current Liabilities
Current Liabilities
A type of assets that will be consumed as it is used:a) Costb) Suppliesc) Bad Debtsd) Cash Receiptse) Current Liabilities
Supplies
The owners equity or the owner’s financial interest in a business:a) Makerb) Creditorc) Corporationd) Proprietorshipe) Merchandising Business
Proprietorship
A business or individual to whom a debt is owed:a) Makerb) Creditorc) Corporationd) Proprietorshipe) Merchandising Business
Creditor
A business firm that obtains income through the buying and selling of goods:a) Makerb) Creditorc) Corporationd) Proprietorshipe) Merchandising Business
Merchandising Business
A business, owned by stockholders, which is chartered under state law to conduct a business or other activity:a) Makerb) Creditorc) Corporationd) Proprietorshipe) Merchandising Business
Corporation
The individual who makes a promise to pay on a promissory note:a) Makerb) Creditorc) Corporationd) Proprietorshipe) Merchandising Business
Maker
A statement regarding the status of assets, liabilities, and owner’s equity as of a specified date:a) Transactionb) Trial Balancec) Balance Sheetd) Source Documente) Income Statement
Balance Sheet
A formal statement which presents the revenue and expenses of a specified period of time:a) Transactionb) Trial Balancec) Balance Sheetd) Source Documente) Income Statement
Income Statement
The first record of a business transaction:a) Transactionb) Trial Balancec) Balance Sheetd) Source Documente) Income Statement
Source Document
Financial events that affect assets, liabilities, or owner’s equity:a) Transactionb) Trial Balancec) Balance Sheetd) Source Documente) Income Statement
Transaction
An informal statement proving that total debit balances are equal to the total credit balances in the ledger:a) Transactionb) Trial Balancec) Balance Sheetd) Source Documente) Income Statement
Trial Balances
In order of time:a) Incomeb) Drawerc) Expensesd) Consignore) Chronological
Chronological
The person or business concerned by whom a shipment is made:a) Incomeb) Drawerc) Expensesd) Consignore) Chronological
Consignor
A person who signs a check or draft ordering payment to be made:a) Incomeb) Drawerc) Expensesd) Consignore) Chronological
Drawer
The decrease in owners equity due to consumption of goods and services used in the operation of the business:a) Incomeb) Drawerc) Expensesd) Consignore) Chronological
Expenses
Increase in the owners equity resulting from business operations:a) Incomeb) Drawerc) Expensesd) Consignore) Chronological
Income
The recording of business data in a prescribed manner:a) Cashb) Capitalc) Book Keepingd) Current Assetse) Closing Entries
Book Keeping
Coins, currency, checks, and money order receipts from others, as well as money deposited in the bank:a) Cashb) Capitalc) Book Keepingd) Current Assetse) Closing Entries
Cash
The net value of an owner’s financial interest in a business:a) Cashb) Capitalc) Book Keepingd) Current Assetse) Closing Entries
Capital
Cash or other assets that will be converted into cash or consumed within one year:a) Cashb) Capitalc) Book Keepingd) Current Assetse) Closing Entries
Current assets
The transferral of the balances of the temporary accounts to the capital accounts:a) Cashb) Capitalc) Book Keepingd) Current Assetse) Closing Entries
Closing Entries
Recording in each fiscal period applicable expense, whether paid or not, and income earned, whether collected or not:a) Checkb) Charterc) Bank Statementd) Accrual Accountinge) Certified Public Accounting
Accrual Accounting
An itemized listing of additions to and subtractions from a depositor’s account:a) Checkb) Charterc) Bank Statementd) Accrual Accountinge) Certified Public Accounting
Bank Statement
An individual certified to practice public accounting in a state:a) Checkb) Charterc) Bank Statementd) Accrual Accountinge) Certified Public Accounting
Certified Public Accountant
A document issued by a state which permits a corporation to operate:a) Checkb) Charterc) Bank Statementd) Accrual Accountinge) Certified Public Accounting
Charter
A written order drawn by a depositor directing his bank to deduct money from his account and pay the person or company designated:a) Checkb) Charterc) Bank Statementd) Accrual Accountinge) Certified Public Accounting
Check
The money or other assets supplied by the owner for the operation of a business:a) Investmentb) Mortgage Payablec) Posting Referencesd) Negotiable Instrumente) Net Working Capital
Investment
A written promise that pledges real property as security for the payment of a debt:a) Investmentb) Mortgage Payablec) Posting Referencesd) Negotiable Instrumente) Net Working Capital
Mortgage Payable
A business paper that is a claim on cash and which may be transferred legally by endorsement:a) Investmentb) Mortgage Payablec) Posting Referencesd) Negotiable Instrumente) Net Working Capital
Negotiable Instrument
Excess of current assets over current liabilities:a) Investmentb) Mortgage Payablec) Posting Referencesd) Negotiable Instrumente) Net Working Capital
Net Working Capital
Journal page numbers and ledger account numbers which when present, confirms that an entry has been posted:a) Investmentb) Mortgage Payablec) Posting Referencesd) Negotiable Instrumente) Net Working Capital
Posting References
Credit given to a customer for shortages or damaged goods delivered:a) Accrued Incomeb) Sales Discountc) Statement of Accountd) Allowance of Depreciatione) Sales Returns and Allowances
Sales Returns and Allowances
A deduction from the sales invoice as incentive for customers to pay their invoices early:a) Accrued Incomeb) Sales Discountc) Statement of Accountd) Allowance of Depreciatione) Sales Returns and Allowances
Sales Discount
An account used to accumulate decreases in value of fixed assets:a) Accrued Incomeb) Sales Discountc) Statement of Accountd) Allowance of Depreciatione) Sales Returns and Allowances
Allowance of Depreciation
A report sent to each customer which indicates the status of his account:a) Accrued Incomeb) Sales Discountc) Statement of Accountd) Allowance of Depreciatione) Sales Returns and Allowances
Statement of Account
Income earned during an accounting period but not yet received:a) Accrued Incomeb) Sales Discountc) Statement of Accountd) Allowance of Depreciatione) Sales Returns and Allowances
Accrued Income
An account used to record or determine the estimated value of an asset:a) Drawing Accountb) Promissory Notec) Valuation Accountd) Allowance for Doubtful Accountse) Purchase Returns and Allowances
Valuation Account
A separate owners equity account in which withdraws of assets against profits by the owner are recorded:a) Drawing Accountb) Promissory Notec) Valuation Accountd) Allowance for Doubtful Accountse) Purchase Returns and Allowances
Drawing Account
Credit received for shortages or for damaged goods received:a) Drawing Accountb) Promissory Notec) Valuation Accountd) Allowance for Doubtful Accountse) Purchase Returns and Allowances
Purchase Returns and Allowances
An account in which is recorded the decrease in value of accounts receivable due to possible uncollectable items:a) Drawing Accountb) Promissory Notec) Valuation Accountd) Allowance for Doubtful Accountse) Purchase Returns and Allowances
Allowance for Doubtful Accounts
A written promise to pay money to another person or business at a specified or determinable time:a) Drawing Accountb) Promissory Notec) Valuation Accountd) Allowance for Doubtful Accountse) Purchase Returns and Allowances
Promissory Note
The account paid for insurance protection:a) Retail Sales Taxb) Income Taxc) Insurance Policyd) Insurance Premium e) Stock Certificate
Insurance Premium
Levied on the earnings of individuals in businesses by federal, state, and local government:a) Retail Sales Taxb) Income Taxc) Insurance Policyd) Insurance Premium e) Stock Certificate
Income Tax
A contract between an insurance company and the party insured:a) Retail Sales Taxb) Income Taxc) Insurance Policyd) Insurance Premium e) Stock Certificate
Insurance Policy
Imposed upon the purchaser of goods and collected by the seller, who remits such to the state or city government:a) Retail Sales Taxb) Income Taxc) Insurance Policyd) Insurance Premium e) Stock Certificate
Retail Sales Tax
Evidence of the ownership of corporation stock:a) Retail Sales Taxb) Income Taxc) Insurance Policyd) Insurance Premium e) Stock Certificate
Stock Certificate
Capital or net worth:a) Current Assetb) Current Liabilityc) Proprietorshipd) Fixed Liabilitye) Fixed Asset
Proprietorship
Accounts Receivable:a) Current Assetb) Current Liabilityc) Proprietorshipd) Fixed Liabilitye) Fixed Asset
Current Asset
Accounts Payable:a) Current Assetb) Current Liabilityc) Proprietorshipd) Fixed Liabilitye) Fixed Asset
Current Liability
Mortgage Payable within 15 years:a) Current Assetb) Current Liabilityc) Proprietorshipd) Fixed Liabilitye) Fixed Asset
Fixed Liability
Assets which will not be sold during the fiscal period:a) Current Assetb) Current Liabilityc) Proprietorshipd) Fixed Liabilitye) Fixed Asset
Fixed Asset
Things of value owned by a business:a) Balance Sheetb) Trial Balancec) Assetsd) Liabilitiese) Proprietorship
Assets
One’s debt:a) Balance Sheetb) Trial Balancec) Assetsd) Liabilitiese) Proprietorship
Liabilities
The equity of the owner of the business:a) Balance Sheetb) Trial Balancec) Assetsd) Liabilitiese) Proprietorship
Proprietorship
The financial statement reflects the status of assets, liabilities, and owner’s equity as of a given date:a) Balance Sheetb) Trial Balancec) Assetsd) Liabilitiese) Proprietorship
Balance Sheet
A check of equality of debts and credits:a) Balance Sheetb) Trial Balancec) Assetsd) Liabilitiese) Proprietorship
Trial Balance
One who owes debts:a) Fixed Liabilityb) Proprietorshipc) Debtord) Current Liabilitye) Creditor
Debtor
One to whom debts are owed:a) Fixed Liabilityb) Proprietorshipc) Debtord) Current Liabilitye) Creditor
Creditor
Owner’s equity:a) Fixed Liabilityb) Proprietorshipc) Debtord) Current Liabilitye) Creditor
Proprietorship
Mortgage Payable:a) Fixed Liabilityb) Proprietorshipc) Debtord) Current Liabilitye) Creditor
Fixed Liability
Accounts Payable:a) Fixed Liabilityb) Proprietorshipc) Debtord) Current Liabilitye) Creditor
Current Liability
Recording information in a ledger:a) Ledgerb) Balance Sheetc) Postingd) Journale) Profit and Loss Statements
Posting
A book of accounts:a) Ledgerb) Balance Sheetc) Postingd) Journale) Profit and Loss Statements
Ledger
Book in which the fitst formal double entry record of transactions is made:a) Ledgerb) Balance Sheetc) Postingd) Journale) Profit and Loss Statements
Journal
A statement of assets, liabilities, and proprietorship at a specific date:a) Ledgerb) Balance Sheetc) Postingd) Journale) Profit and Loss Statements
Balance Sheet
A summary of the results of operations for a specified period of time:a) Ledgerb) Balance Sheetc) Postingd) Journale) Profit and Loss Statements
Profit and Loss Statements
Used to record paying cash for an item:a) Purchases Journalb) Sales Journalc) Cash Receipt Journald) Cash Payment Journale) General Journal
Cash Payment Journal
For recording the buying of an article on credit:a) Purchases Journalb) Sales Journalc) Cash Receipt Journald) Cash Payment Journale) General Journal
Purchases Journal
For receiving cash from merchandise:a) Purchases Journalb) Sales Journalc) Cash Receipt Journald) Cash Payment Journale) General Journal
Cash Receipt Journal
Used to record selling of merchandise on credit:a) Purchases Journalb) Sales Journalc) Sales Receipt Journald) Cash Payment Journale) General Journal
Sales Journal
Used for miscellaneous entries:a) Purchases Journalb) Sales Journalc) Sales Receipt Journald) Cash Payment Journale) General Journal
General Journal
To be used over a long period of time:a) Tangible Assetsb) Intangible Assetsc) Cash Assetsd) Current Assetse) Fixed Assets
Fixed Assets
To be used relatively soon:a) Tangible Assetsb) Intangible Assetsc) Cash Assetsd) Current Assetse) Fixed Assets
Current Assets
Capable of being touched:a) Tangible Assetsb) Intangible Assetsc) Cash Assetsd) Current Assetse) Fixed Assets
Tangible Assets
Not physical or material:a) Tangible Assetsb) Intangible Assetsc) Cash Assetsd) Current Assetse) Fixed Assets
Intangible Assets
Money:a) Tangible Assetsb) Intangible Assetsc) Cash Assetsd) Current Assetse) Fixed Assets
Cash Assets
Check returned to the depositor that has been paid by the bank:a) Check Stubb) Drawerc) Payeed) Cancellede) Outstanding
Cancelled
A source of information for the journal:a) Check Stubb) Drawerc) Payeed) Cancellede) Outstanding
Check Stub
The one to whom the bank is ordered to pay the cash:a) Check Stubb) Drawerc) Payeed) Cancellede) Outstanding
Payee
A check that has been issued, but not yet presented for payment:a) Check Stubb) Drawerc) Payeed) Cancellede) Outstanding
Outstanding
The one who orders the bank to pay money from his account:a) Check Stubb) Drawerc) Payeed) Cancellede) Outstanding
Drawer
The time allowed for the payment of a sale:a) Fiscal periodb) Fiscal Yearc) Compound Entryd) Withdrawse) Terms
Terms
Assets taken out of the business by the owner for his personal use:a) Fiscal periodb) Fiscal Yearc) Compound Entryd) Withdrawse) Terms
Withdraws
The period for which an analysis of the operations for a business is made:a) Fiscal periodb) Fiscal Yearc) Compound Entryd) Withdrawse) Terms
Fiscal Period
A journal entry that contains two or more debits or two or more credits:a) Fiscal periodb) Fiscal Yearc) Compound Entryd) Withdrawse) Terms
Compound Entry
An accounting year ending some other date than December 31st:a) Fiscal periodb) Fiscal Yearc) Compound Entryd) Withdrawse) Terms
Fiscal Year
Free on Board:a) CPAb) CODc) CIFd) CBDe) FOB
FOB
Collect before delivery:a) CPAb) CODc) CIFd) CBDe) FOB
CBD
Certified Public Accountant:a) CPAb) CODc) CIFd) CBDe) FOB
CPA
Cost Insurance and Freight:a) CPAb) CODc) CIFd) CBDe) FOB
CIF
Collect on Delivery:a) CPAb) CODc) CIFd) CBDe) FOB
COD
Stockholders:a) Interestb) Mark-upc) Fixed Assetsd) Partnershipe) Corporation
Corporation
Land, buildings, equipment:a) Interestb) Mark-upc) Fixed Assetsd) Partnershipe) Corporation
Fixed Assets
Amount added to cost of merchandise to determine the selling price:a) Interestb) Mark-upc) Fixed Assetsd) Partnershipe) Corporation
Mark-up
A business owned by two or more individuals with profits or losses jointly shared:a) Interestb) Mark-upc) Fixed Assetsd) Partnershipe) Corporation
Partnership
Money paid for the use of money:a) Interestb) Mark-upc) Fixed Assetsd) Partnershipe) Corporation
Interest
A special book in which payments made by check are recorded:a) Book Valueb) Invoicec) Check Registerd) Certified Checke) Cashier’s Check
Check Register
A check drawn by a bank on it’s own funds and signed by the cashier:a) Book Valueb) Invoicec) Check Registerd) Certified Checke) Cashier’s Check
Cashier’s Check
A check which carries the guarantee of the drawee that sufficient funds are available to pay the check when it is properly presented:a) Book Valueb) Invoicec) Check Registerd) Certified Checke) Cashier’s Check
Certified Check
Cost of a fixed asset less accumulated depreciation:a) Book Valueb) Invoicec) Check Registerd) Certified Checke) Cashier’s Check
Book Value
A paper showing quantity, description, prices of items, total amount of purchases and the terms of payment:a) Book Valueb) Invoicec) Check Registerd) Certified Checke) Cashier’s Check
Invoice
A payment:a) Restrictive Endorsementb) Blank Endorsementc) Endorsement in Fulld) Deferrede) Disbursement
Disbursement
To delay unti a later date:a) Restrictive Endorsementb) Blank Endorsementc) Endorsement in Fulld) Deferrede) Disbursement
Deferred
Consists merely of the signature of the endorser on the back of a check:a) Restrictive Endorsementb) Blank Endorsementc) Endorsement in Fulld) Deferrede) Disbursement
Blank Endorsement
Endorsement which uses the phrase, “Pay to the Order of”:a) Restrictive Endorsementb) Blank Endorsementc) Endorsement in Fulld) Deferrede) Disbursement
Endorsement in Full
Endorsement which uses the phrase, “For Deposit Only”:a) Restrictive Endorsementb) Blank Endorsementc) Endorsement in Fulld) Deferrede) Disbursement
Restrictive Endorsement
The comparison of current assets with current liabilities:a) Acid Test Ratiob) Inventory Turnoverc) Long Lived Asset Ratiod) Current Asset Ratioe) Total Asset Ratio
Current Asset Ratio
The comparison of the fixed assets with the fixed liabilities:a) Acid Test Ratiob) Inventory Turnoverc) Long Lived Asset Ratiod) Current Asset Ratioe) Total Asset Ratio
Long Lived Asset Ratio
Comparison of cash and all the other current assets that are readily recognizable in cash with the other current liabilities:a) Acid Test Ratiob) Inventory Turnoverc) Long Lived Asset Ratiod) Current Asset Ratioe) Total Asset Ratio
Acid Test Ratio
Comparison or total assets with total liabilities:a) Acid Test Ratiob) Inventory Turnoverc) Long Lived Asset Ratiod) Current Asset Ratioe) Total Asset Ratio
Total Asset Ratio
Determined by dividing the cost of goods by the average inventory:a) Acid Test Ratiob) Inventory Turnoverc) Long Lived Asset Ratiod) Current Asset Ratioe) Total Asset Ratio
Inventory Turnover
