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Accounting I > FBLA > Flashcards

FBLA Flashcards

1
Q

Accelerated depreciation

A

Any method of depreciation which records greater depreciation expense in the early years and less depreciation expense in the later years.

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2
Q

Account

A

A record that summarizes all the transactions pertaining to a single item in the accounting equation.

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3
Q

Account balance

A

The difference between the increases and decreases in an account.

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4
Q

Accounting

A

The process of planning, recording, analyzing, and interpreting financial information.

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5
Q

Accounting cycle

A

The series of accounting activities included in recording financial information for a fiscal period.

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6
Q

Accounting equation

A

An equation showing the relationship among assets, liabilities, and owner’s equity.

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7
Q

Accounting system

A

A planned process designed to compile financial data and summarize the results in accounting records and reports.

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8
Q

Accounts payable ledger

A

A planned process designed to compile financial data and summarize the results in accounting records and reports.

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9
Q

Accounts receivable ledger

A

A subsidiary ledger containing all accounts for charge customers.

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10
Q

Accrual

A

An entry recording revenue before the cash is received, or an expense before the cash is paid.

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11
Q

Accrual basis of accounting

A

Reporting income when earned and expenses when incurred.

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12
Q

Accrued expenses

A

Expenses incurred in one fiscal period, but not paid until a later fiscal period.

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13
Q

Accrued expenses entry

A

Expenses incurred in one fiscal period, but not paid until a later fiscal period.

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14
Q

Accrued interest expense

A

Expenses incurred in one fiscal period, but not paid until a later fiscal period.

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15
Q

Accrued interest income

A

Interest earned but not yet received.

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16
Q

Accrued revenue

A

Interest earned but not yet received.

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17
Q

Accumulated depreciation

A

The total amount of depreciation expense that has been recorded since thepurchase of a plant asset.

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18
Q

Accumulated earnings

A

The total gross earnings year to date for an employee.

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19
Q

Accelerated depreciation

A

Any method of depreciation which records greater depreciation expense in the early years and less depreciation expense in the later years.

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20
Q

adjusting entries

A

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

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21
Q

adjustments

A

Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period.

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22
Q

aging of accounts receivable

A

Analyzing accounts receivable according to when they are due.

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23
Q

allowance method

A

Crediting the estimated value of uncollectible accounts to a contra account.

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24
Q

amortization

A

The spreading of the cost of an intangible asset over its useful life.

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25
Q

articles of incorporation

A

A legal document that identifies basic characteristics of a corporation, which is a part of the application submitted to a state to become a corporation.

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26
Q

assessed value

A

he value of an asset determined by tax authorities for the purpose of calculating taxes.

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27
Q

balance sheet

A

A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

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28
Q

bank statement

A

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.

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29
Q

batch report

A

A report of credit card sales produced by a point-of-sale terminal.

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30
Q

batching out

A

The process of preparing a batch report from a point-of-sale terminal.

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31
Q

beginning inventory

A

The amount of inventory on hand at the beginning of a fiscal period.

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32
Q

benchmark

A

A standard used to compare financial performance.

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33
Q

bill of lading

A

A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise.

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34
Q

blank endorsement

A

An endorsement consisting only of the endorser’s signature.

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35
Q

board of directors

A

A group of persons elected by the stockholders to govern a corporation.

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36
Q

bond

A

A long-term promise to pay a specified amount on a specified date and to pay interest at stated intervals.

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37
Q

bond issue

A

All bonds representing the total amount of a loan.

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38
Q

book value

A

The difference between an asset’s account balance and its related contra account balance.

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39
Q

book value of a plant asset

A

The original cost of a plant asset minus accumulated depreciation.

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40
Q

book value of accounts receivable

A

The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

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41
Q

canceled check

A

A check which has been paid by the bank.

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42
Q

capital

A

The assets or other financial resources available to a business.

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43
Q

capital expenditures

A

Purchases of plant assets used in the operation of a business.

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44
Q

capital stock

A

The total shares of ownership in a corporation.

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45
Q

cash basis of accounting

A

Reporting income when the cash is received and expenses when the cash is paid.

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46
Q

cash discount

A

A deduction that a vendor allows on an invoice amount to encourage prompt payment.

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47
Q

cash flow

A

The cash receipts and cash payments of a company.

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48
Q

cash over

A

A petty cash on hand amount that is more than the recorded amount.

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49
Q

cash payments journal

A

A special journal used to record only cash payment transactions.

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50
Q

cash receipts journal

A

A special journal used to record only cash receipt transactions.

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51
Q

cash sale

A

A sale in which the customer pays for the total amount of the sale at the time of the transaction.

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52
Q

cash short

A

A petty cash on hand amount that is less than the recorded amount.

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53
Q

charter

A

A state approves the formation of a corporation by issuing a charter, the legal right for a business to conduct operations as a corporation.

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54
Q

check

A

A business form ordering a bank to pay cash from a bank account.

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55
Q

checking account

A

A bank account from which payments can be ordered by a depositor.

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56
Q

closing entries

A

Journal entries used to prepare temporary accounts for a new fiscal period.

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57
Q

collateral

A

Assets pledged to a creditor to guarantee repayment of a loan.

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58
Q

commercial invoice

A

A statement prepared by the seller of merchandise addressed to the buyer showing a detailed listing and description of merchandise sold, including prices and terms.

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59
Q

commission

A

A method of paying an employee based on the amount of sales the employee generates. Commissions are normally calculated as a percent of an employee’s sales.

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60
Q

comparative financial statements

A

Financial statements that provide information for multiple fiscal periods.

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61
Q

contra account

A

An account that reduces a related account on a financial statement.

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62
Q

contract of sale

A

A document that details all the terms agreed to by seller and buyer for a sales transaction.

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63
Q

controlling account

A

An account in a general ledger that summarizes all accounts in a subsidiary ledger.

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64
Q

corporation

A

An organization with the legal rights of a person which many persons or other corporations may own.

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65
Q

correcting entry

A

If a transaction has been improperly journalized and posted to the ledger, the incorrect journal entry should be corrected with an additional journal entry, called a correcting entry.

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66
Q

cost of capital

A

The ratio of interest and dividend payments to the proceeds from debt and capital financing.

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67
Q

cost of merchandise

A

The amount a business pays for goods it purchases to sell.

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68
Q

cost of merchandise sold

A

The original price of all merchandise sold during a fiscal period.

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69
Q

credit limit

A

he maximum outstanding balance allowed to a customer by a vendor.

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70
Q

credit memorandum

A

A form prepared by the vendor showing the amount deducted for returns and allowances.

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71
Q

creditor

A

A person or business to whom a liability is owed.

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72
Q

current assets

A

Cash and other assets expected to be exchanged for cash or consumed within a year.

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73
Q

current liabilities

A

Liabilities due within a short time, usually within a year.

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74
Q

current ratio

A

A ratio that measures the relationship of current assets to current liabilities.

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75
Q

data analytics

A

The process of using computer software to analyze large amounts of data extracted from accounting systems.
AKA data mining

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76
Q

debit card

A

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.

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77
Q

debit memorandum

A

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

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78
Q

debt financing

A

Obtaining capital by borrowing money for a period of time.

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79
Q

debt ratio

A

Total liabilities divided by total assets.

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80
Q

declaring a dividend

A

Action by a board of directors to distribute corporate earnings to stockholders.

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81
Q

declining-balance method of depreciation

A

A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.

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82
Q

deferral

A

An entry recording the receipt of cash before the related revenue is earned, or payment of cash before the related expense is incurred.

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83
Q

deferred expenses

A

Payments for goods or services which have not yet been received. See also prepaid expense.

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84
Q

deferred revenue

A

Cash received for goods or services which have not yet been provided.

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85
Q

deposit

A

The payment of payroll taxes to the government.

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86
Q

deposit slip

A

A bank form which lists the checks, currency, and coins an account holder is adding to a bank account.

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87
Q

depreciation

A

A loss in the usefulness of a plant asset as a result of wear or obsolescence

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88
Q

depreciation expense

A

The portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during that assets useful life.

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89
Q

direct deposit

A

The payment of an employee’s net pay using electronic funds transfer.

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90
Q

direct write-off method

A

Recording uncollectible accounts expense only when an amount is actually known to be uncollectible.

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91
Q

discount period

A

The period of time during which a customer may take a cash discount.

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92
Q

dishonored check

A

A check that a bank refuses to pay.

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93
Q

dishonored note

A

A note that is not paid when due.

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94
Q

distribution of net income statement

A

A partnership financial statement showing net income or loss distribution to partners.

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95
Q

dividend yield

A

The relationship between dividends per share and market price per share.

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96
Q

dividends

A

Earnings distributed to stockholders.

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97
Q

double declining-balance method of depreciation

A

A declining-balance rate that is two times the straight-line rate.

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98
Q

double-entry accounting

A

The recording of debit and credit parts of a transaction.

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99
Q

draft

A

A written, signed, and dated order from one party ordering another party, usually a bank, to pay money to a third party.

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100
Q

dual control

A

A control procedure requiring two employees to complete the same action.

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101
Q

due date

A

The date by which an invoice must be paid.

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102
Q

earnings per share

A

Net income after federal income tax divided by the number of outstanding shares of stock.

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103
Q

electronic funds transfer

A

A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.

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104
Q

employee earnings record

A

A business form used to record details of an employee’s earnings and deductions.

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105
Q

ending inventory

A

The actual count of merchandise at the end of a fiscal period.

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106
Q

endorsement

A

A signature or stamp on the back of a check transferring ownership.

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107
Q

equities

A

Financial rights to the assets of a business.

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108
Q

equity

A

The difference between assets and liabilities.

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109
Q

equity financing

A

Obtaining capital by issuing stock in a corporation.

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110
Q

exports

A

Goods or services shipped out of a seller’s home country to another country.

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111
Q

federal unemployment tax

A

A federal tax paid by employers to administer the unemployment program.

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112
Q

file maintenance

A

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.

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113
Q

financial accounting

A

The area of accounting which focuses on reporting information to external users.

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114
Q

financial leverage

A

The ability of a business to use borrowed funds to increase its earnings.

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115
Q

financial ratio

A

A comparison between two components of financial information.

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116
Q

financial statements

A

Financial reports that summarize the financial condition and operations of a business.

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117
Q

financing activities

A

Cash receipts and payments involving debt or equity transactions.

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118
Q

first-in, first-out inventory costing method (FIFO)

A

Using the price of merchandise purchased first to calculate the cost of merchandise sold first

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119
Q

fiscal period

A

The length of time for which a business summarizes its financial information and reports its financial performance.

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120
Q

fiscal year

A

A fiscal period consisting of 12 consecutive months.

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121
Q

GAAP

A

Generally accepted accounting principles. The standards and rules that accountants follow while recording and reporting financial activities.

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122
Q

gain

A

An increase in equity resulting from activity other than selling goods or services.

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123
Q

gain on plant assets

A

An increase in equity that results when a plant asset is sold for more than book value.

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124
Q

general amount column

A

A journal amount column that is not headed with an account title.

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125
Q

general journal

A

A journal with two amount columns in which all kinds of entries can be recorded.

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126
Q

general ledger

A

A ledger that contains all accounts needed to prepare financial statements

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3
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Perfectly
127
Q

gross margin

A

Gross profit as a percent of net sales.

128
Q

gross profit

A

The operating revenue remaining after cost of merchandise sold has been deducted.

129
Q

gross profit method of estimating inventory

A

Estimating inventory by using the previous year’s percentage of gross profit on operations.

130
Q

horizontal analysis

A

A comparison of one item on a financial statement with the same item on a previous period’s financial statement.

131
Q

imports

A

Goods or services shipped into the buyer’s home country from another country.

132
Q

income from operations

A

The operating revenue remaining after the cost of merchandise sold and operating expenses have been deducted.

133
Q

income statement

A

A financial statement showing the revenue and expenses for a fiscal period.

134
Q

individual retirement account (IRA)

A

A qualified retirement plan that provides most individuals with a deferred federal income tax benefit.

135
Q

intangible asset

A

An asset that does not have physical substance.

136
Q

interest expense

A

Interest accrued on borrowed funds.

137
Q

interest income

A

The interest earned on money loaned.

138
Q

interest rate

A

The percentage of the principal that is due for the use of the funds secured by a note.

139
Q

inventory

A

A list of assets, usually containing the value of individual items.

140
Q

inventory record

A

A form used during a physical inventory to record information about each item of merchandise on hand.

141
Q

investing activities

A

Cash receipts and cash payments involving the sale or purchase of assets used to earn revenue over a period of time.

142
Q

invoice

A

A form describing the goods or services sold, the quantity, the price, and the terms of sale.

143
Q

issue date

A

The date on which a business issues a note, bond, or stock.

144
Q

journal

A

A form for recording transactions in chronological order.

145
Q

journalizing

A

Recording transactions in a journal.

146
Q

401(k)

A

A qualified retirement plan sponsored by an employer.

147
Q

last-in, first-out inventory costing method (LIFO)

A

Using the price of merchandise purchased last to calculate the cost of merchandise sold first.

148
Q

ledger

A

A group of accounts.

149
Q

letter of credit

A

A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount provided stated conditions are met.

150
Q

liability

A

An amount owed.

151
Q

line of credit

A

A bank loan agreement that provides immediate short-term access to cash.

152
Q

liquidation of a partnership

A

The process of paying a partnership’s liabilities and distributing remaining assets to the partners

153
Q

liquidity ratio

A

A ratio that measures the ability of a business to pay its current financial obligations.

154
Q

list price

A

The retail price listed in a catalog or on an Internet site.

155
Q

long-term liabilities

A

Liabilities owed for more than a year.

156
Q

lookback period

A

The 12 month period that ends on June 30th of the prior year that is used to determine how frequently a business must deposit payroll taxes.

157
Q

loss

A

A decrease in equity resulting from activity other than selling goods or services.

158
Q

loss on plant assets

A

The decrease in equity that results when a plant asset is sold for less than book value.

159
Q

lower of cost or market inventory costing method (LCM)

A

Using the lower of cost or market price to calculate the cost of ending merchandise inventory.

160
Q

maker of a note

A

The person or business that signs a note and thus promises to make payment.

161
Q

managerial accounting

A

The area of accounting that focuses on reporting information to internal users.

162
Q

marginal tax rate

A

The tax rate associated with a tax bracket.

163
Q

market ratio

A

A ratio that measures a corporation’s financial performance in relation to the market value of its stock.

164
Q

market value

A

The price that must be paid to replace an asset.

165
Q

markup

A

The amount a business adds to the cost of merchandise to establish the selling price.

166
Q

maturity date

A

The date on which the principal of a note is due to be repaid.

167
Q

maturity value

A

The amount that is due on the maturity date of a note.

168
Q

Medicare tax

A

A federal tax paid for hospital insurance.

169
Q

memorandum

A

A form on which a brief message is written to describe a transaction.

170
Q

merchandise

A

Goods that a business purchases to sell.

171
Q

merchandise inventory

A

The goods a business has on hand for sale to customers.

172
Q

merchandising business

A

A business that purchases and resells goods.

173
Q

net income

A

The difference between total revenue and total expenses when total revenue is greater.

174
Q

net loss

A

The difference between total revenue and total expenses when total expenses are greater.

175
Q

net pay

A

Earnings paid to an employee after payroll taxes and other deductions.

176
Q

net price

A

The price after the trade discount has been deducted from the list price.

177
Q

net realizable value

A

The amount of accounts receivable a business expects to collect.

178
Q

net sales

A

The amount of sales, less sales discounts and sales returns and allowances.

179
Q

net worth statement

A

A formal report that shows what an individual owns, what an individual owes, and the difference between the two

180
Q

non-operating expenses

A

Expenses that are not related to a business’s normal operations.

181
Q

non-sufficient funds check

A

A check dishonored by the bank because of insufficient funds in the account of the maker of the check.

182
Q

normal balance

A

The side of an account that is increased is called the normal balance of the account.

183
Q

note payable

A

A promissory note signed by a business and given to a creditor.

184
Q

note receivable

A

A promissory note that a business accepts from a person or business.

185
Q

opening an account

A

Writing an account title and number on the heading of an account.

186
Q

operating activities

A

The cash receipts and payments necessary to operate a business on a day-to-day basis.

187
Q

operating expense ratio

A

Total operating expenses as a percent of net sales.

188
Q

operating expenses

A

The expenses incurred by a business in its normal operations.

189
Q

operating Margin

A

Income from operations as a percent of net sales.

190
Q

operating revenue

A

The revenue earned by a business from its normal business operations.

191
Q

owners’ equity statement

A

A financial statement that summarizes the changes in owners’ equity during a fiscal period.

192
Q

owner’s equity

A

The amount remaining after the value of all liabilities is subtracted from the value of all assets.

193
Q

par value

A

A value assigned to a share of stock and printed on the stock certificate.

194
Q

partnership

A

A business in which two or more persons combine their assets and skills.

195
Q

pay period

A

A written agreement setting forth the conditions under which a partnership is to operate

196
Q

pay period

A

The number of days or weeks of work covered by an employee’s paycheck.

197
Q

Payee

A

The person or business to whom the amount of a note is payable.

198
Q

payroll

A

The total amount earned by all employees for a pay period.

199
Q

payroll clerk

A

The accounting staff position that compiles and computes payroll data, then prepares, journalizes, and posts payroll transactions.

200
Q

payroll deduction

A

Any amount withheld from an employee’s gross earnings.

201
Q

payroll register

A

An accounting form that summarizes the earnings, deductions, and net pay of all employees for one pay period.

202
Q

payroll taxes

A

Taxes based on the payroll of a business.

203
Q

percent of accounts receivable method

A

A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.

204
Q

percent of sales method

A

A method used to estimate uncollectible accounts receivable which assumes that a percentage of each sales dollar will eventually become uncollectible.

205
Q

periodic inventory

A

A merchandise inventory evaluated at the end of a fiscal period.

206
Q

permanent accounts

A

Accounts used to accumulate information from one fiscal period to the next.

207
Q

perpetual inventory

A

An inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise.

208
Q

personal net worth

A

The difference between personal assets and personal liabilities.

209
Q

personal property

A

All property not classified as real property.

210
Q

petty cash

A

An amount of cash kept on hand and used for making small payments.

211
Q

petty cash slip

A

A form showing proof of a petty cash payment.

212
Q

physical inventory

A

A periodic inventory conducted by counting, weighing, or measuring items of merchandise on hand.

213
Q

plant asset record

A

An accounting form on which a business records information about each plant asset.

214
Q

plant assets

A

Physical assets that will be used for a number of years in the operation of a business

215
Q

point-of-sale (POS) terminal

A

A specialized computer used to collect, store, and report all the information about a sales transaction.

216
Q

post-closing trial balance

A

A trial balance prepared after the closing entries are posted.

217
Q

postdated check

A

A check with a future date on it.

218
Q

posting

A

Transferring information from a journal entry to a ledger account.

219
Q

preferred stock

A

A class of stock that gives preferred shareholders preference over common shareholders in dividends along with other rights.

220
Q

prepaid expense

A

Cash paid for an expense in one fiscal period that is not used until a later period. See also deferred expenses.

221
Q

price-earnings ratio

A

The relationship between the market value per share and earnings per share of a stock.

222
Q

prime interest rate

A

The interest rate charged to a bank’s most creditworthy customers.

223
Q

principal

A

The original amount of a note, sometimes referred to as the face amount.

224
Q

profit margin

A

Net income after federal income tax as a percent of net sales.

225
Q

profitability ratio

A

A ratio that measures the ability of a business to generate income.

226
Q

promissory note

A

A written and signed promise to pay a sum of money at a specified time.

227
Q

proprietorship

A

A business owned by one person

228
Q

proving cash

A

Determining that the amount of cash agrees with the balance of the cash account in the accounting records.

229
Q

purchase invoice

A

An invoice used as a source document for recording a purchase on account transaction.

230
Q

purchase on account

A

A transaction in which the items purchased are to be paid for later.

231
Q

purchase order

A

A form requesting that a vendor sell merchandise to a business.

232
Q

purchases allowance

A

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s account payable to the vendor.

233
Q

purchases discount

A

When a company that has purchased merchandise on account takes a cash discount.

234
Q

purchases journal

A

A special journal used to record only purchases of merchandise on account.

235
Q

purchases return

A

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s account payable to the vendor.

236
Q

qualified retirement plan

A

A retirement savings plan approved by the Internal Revenue Service that provides individuals with a tax benefit. See also 401(k), individual retirement account, Roth IRA.

237
Q

quick assets

A

Cash and other current assets that can be quickly converted into cash.

238
Q

quick ratio

A

A ratio that measures the relationship of quick assets to current liabilities.

239
Q

ratio analysis

A

The calculation and interpretation of a financial ratio.

240
Q

real property

A

Land and anything attached to the land.

241
Q

realization

A

Cash received from the sale of assets during liquidation of a partnership.

242
Q

receipt

A

A business form giving written acknowledgement for cash received.

243
Q

requisition

A

A form requesting the purchase of merchandise.

244
Q

restrictive endorsement

A

An endorsement restricting further transfer of a check’s ownership.

245
Q

retail merchandising business

A

A merchandising business that sells to those who use or consume the goods.

246
Q

retained earnings

A

An amount earned by a corporation and not yet distributed to stockholders.

247
Q

return on investment

A

The ratio of the money earned on an investment relative to the amount of the investment.

248
Q

return on sales (ROS)

A

The ratio of net income to total sales.

249
Q

revenue

A

An increase in equity resulting from the sale of goods or services.

250
Q

revenue expenditure

A

The payment of an operating expense necessary to earn revenue.

251
Q

reversing entry

A

An entry made at the beginning of one fiscal period to reverse an adjusting entry made in the previous fiscal period.

252
Q

Roth individual retirement account (Roth IRA)

A

A qualified retirement plan that allows tax-free withdrawals from the account.

253
Q

salary

A

A fixed annual sum of money divided among equal pay periods.

254
Q

salary expense

A

The total of gross earnings for all employees earning hourly wages, salaries, and commissions.

255
Q

sale on account

A

A sale for which payment will be received at a later date.

256
Q

sales allowance

A

Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.

257
Q

sales discount

A

A cash discount on a sale taken by the customer.

258
Q

sales invoice

A

An invoice used as a source document for recording a sale on account. A sales invoice is also referred to as a sales ticket or a sales slip.

259
Q

sales journal

A

A special journal used to record only sales of merchandise on account.

260
Q

sales return

A

Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business.

261
Q

sales tax

A

A tax on a sale of merchandise or services.

262
Q

salvage value

A

The amount that will be received for an asset at the time of its disposal.

263
Q

schedule of accounts payable

A

A listing of vendor accounts, account balances, and the total amount due to all vendors. Some businesses call this listing an accounts payable trial balance.

264
Q

schedule of accounts receivable

A

A listing of customer accounts, account balances, and total amount due from all customers.

265
Q

selling price

A

A listing of customer accounts, account balances, and total amount due from all customers.

266
Q

selling price

A

The amount a business receives from the sale of an item of merchandise.

267
Q

service business

A

A business that performs an activity for a fee.

268
Q

share of stock

A

A unit of ownership in a corporation.

269
Q

sight draft

A

A draft payable on sight when the holder presents it for payment.

270
Q

social security tax

A

A federal tax paid for old-age, survivors, and disability insurance.

271
Q

solvency ratio

A

A ratio that measures the ability of a business to pay its long-term liabilities.

272
Q

source document

A

A business paper from which information is obtained for a journal entry.

273
Q

special amount column

A

A journal amount column headed with an account title.

274
Q

special endorsement

A

An endorsement indicating a new owner of a check.

275
Q

special journal

A

A journal used to record only one kind of transaction.

276
Q

state unemployment tax

A

A state tax paid by employers that is used to pay benefits to unemployed workers.

277
Q

stated interest rate

A

The interest rate used to calculate periodic interest payments on a bond.

278
Q

statement of cash flows

A

A financial statement that summarizes cash receipts and cash payments resulting from business activities during a fiscal period.

279
Q

statement of changes in retained earnings

A

A financial statement that shows the changes in retained earnings for the period.

280
Q

statement of stockholders’ equity

A

A financial statement that shows changes in a corporation’s ownership for a fiscal period.

281
Q

stock ledger

A

A file of stock records for all merchandise on hand.

282
Q

stock record

A

A form used to show the kind of merchandise, quantity received, quantity sold, and balance on hand.

283
Q

stockholder

A

The owner of one or more shares of stock.

284
Q

straight-line method of depreciation

A

Recording an equal amount of depreciation expense for a plant asset in each year of its useful life

285
Q

subsidiary ledger

A

A ledger that is summarized in a single general ledger account. Accountants often refer to a subsidiary ledger as a subledger.

286
Q

supporting schedule

A

A report prepared to give details about an item on a principal financial statement.

287
Q

T account

A

An accounting device used to analyze transactions.

288
Q

tax base

A

The maximum amount of earnings on which a tax is calculated.

289
Q

tax bracket

A

Each tax rate and taxable income amount on one line of a tax table.

290
Q

temporary accounts

A

Accounts used to accumulate information until it is transferred to the owner’s capital account.

291
Q

terminal summary

A

The report that summarizes the cash and credit card sales of a point-of-sale terminal. A terminal summary is also known as a Z tape

292
Q

terms of sale

A

An agreement between a buyer and a seller about payment for merchandise.

293
Q

time clock

A

A device used to record the dates and times of every employee’s arrivals and departures.

294
Q

time draft

A

A draft that is payable at a fixed or determinable future time after it is accepted.

295
Q

time of a note

A

The length of time from the signing date to the maturity date, usually expressed as the number of days.

296
Q

total earnings

A

The total amount paid by a business for an employee’s work, earned by a wage, salary, or commission.

297
Q

trade acceptance

A

A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money, usually at a stated time in the future.

298
Q

trade discount

A

A reduction in the list price granted to a merchandising business.

299
Q

transaction

A

Any business activity that changes assets, liabilities, or owner’s equity.

300
Q

trend analysis

A

An analysis of changes over time.

301
Q

trial balance

A

A proof of the equality of debits and credits in a general ledger.

302
Q

unadjusted trial balance

A

A trial balance prepared before adjusting entries are posted.

303
Q

uncollectible accounts

A

Accounts receivable that cannot be collected.

304
Q

useful life

A

The period of time over which an asset contributes to the earnings of a business.

305
Q

vendor

A

A business from which merchandise, supplies, or other assets are purchased.

306
Q

vertical analysis

A

Reporting an amount on a financial statement as a percentage of another item on the same financial statement.

307
Q

voided check

A

A check that cannot be processed because the maker has made it invalid.

308
Q

voucher check

A

A check which has a detachable check stub, or voucher, that contains detailed information about the cash payment.

309
Q

wage

A

The amount paid to an employee for every hour worked.

310
Q

weighted-average inventory costing method

A

Using the average cost of beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold.

311
Q

wholesale merchandising business

A

A business that buys and resells merchandise primarily to other merchandising businesses.

312
Q

withdrawals

A

Assets taken from the business for the owner’s personal use.

313
Q

withholding allowance

A

A deduction from total earnings for each person legally supported by a taxpayer, including the employee.

314
Q

work sheet

A

A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.

315
Q

working capital

A

The amount of total current assets less total current liabilities.

316
Q

writing off an account

A

Canceling the balance of a customer account because the customer does not pay.

Accounting I (1 decks)

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