Chapter 1: Recording Departmental Purchases and Cash Payments Flashcards
Anything owed of value that is owned
Asset
A record summarizing all the information pertaining to a single item in the accting eq
Account
A record in the a general ledger that summarizes all the accounts in the subsidiary ledger
Controlling Account
An equation that shows the relationship between assets, liabilities, and o.e.
Accounting equation
The recording of debit and credit parts of the transaction
Double entry Accounting
A form recording transactions in chronological order
Journal
A group of accounts
Ledger
A ledger that contains all the accounts needed to prepare finical statements
General ledger
Finical rights to the assets of a business
Equities
the procedure for arranging accounts into a general ledger, assigning accounts numbers, and keeping records current
file maintenance
A journal used to keep only one type of transaction
special journal
a ledger that is summarized in a single general ledger account
Subsidiary ledger
Bus. papers by which information is obtained for a journal entry
Source documents
Amount remaining after assests-from liablites
Owners equity
Owners equity in a corporation
Stockholders corporation
A bus. that sells and purchases goods
Merchandising bus
a cash account discount taken on merchanidse purchased on account
purchases discount
a decdeuction that a vendor allows on the invoice amount to encourage prompt payment
Cash discount
a form prepared by the customer showing the price deduction taken by the customer for return on an allowance
Debit memorandum
an account that reduces a related account on a financial statement
Contra Account
an accounting system showing accounting information for two or more departments
departmental accounting system
an amount of cash kept on hand and used for making small payments
petty cash
transferrring transaction information from a journal entry to a ledger account