Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Accounting > Final Vocab (chapters 1-8) > Flashcards

Final Vocab (chapters 1-8) Flashcards

1
Q

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

A

net worth statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Planning, recording, analyzing, and interpreting financial information

A

accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

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

A

accounting equation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

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

A

transaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A planned process for providing financial information that will be useful to management

A

accounting system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The standards and rules that accountants follow while recording and reporting financial activities

A

GAAP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The account used to summarize the owner’s equity in the business

A

capital account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

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

A

owner’s equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A record summarizing all the information pertaining to a single item in the accounting equation

A

account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The difference between personal assets and personal liabilities

A

personal net worth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Anything of value that is owned

A

asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A sale for which cash will be received at a later date

A

sale on account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Assets taken out of a business for the owner’s personal use

A

withdrawals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A formal written document that describes the nature of a business and how it will operate

A

business plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A business owned by one person

A

proprietorship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The use of ethics in making business decisions

A

business ethics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

A business that performs an activity for a fee

A

service business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The difference between assets and liabilities

A

equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Financial reports that summarize the financial conditions and operations of business

A

financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

An amount owed by a business

A

liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

A person or business to whom a liability is owed

A

creditor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

A decrease in owner’s equity resulting from the operation of a business

A

expense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

An increase in owner’s equity resulting from the operation of a business

A

revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The amount in an account

A

account balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The name given to an account

A

account title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Financial rights to the assets of a business

A

equities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The principles of right and wrong that guide an individual in making decisions

A

ethics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Information for each transaction recorded in a journal

A

entry

29
Q

Recording transactions in a journal

A

journalizing

30
Q

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

A

memorandum

31
Q

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

A

check

32
Q

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

A

source document

33
Q

A form for recording transactions in chronological order

A

journal

34
Q

An invoice used as a source document for recording a sale on account

A

sales invoice

35
Q

A business form giving written acknowledgement for cash received

A

receipt

36
Q

The recording of debit and credit parts of a transaction

A

double-entry accounting

37
Q

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

A

invoice

38
Q

A check that a bank refuses to pay

A

dishonored check

39
Q

A check with a future date on it

A

postdated check

40
Q

A form showing proof of a petty cash payment

A

petty cash slip

41
Q

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

A

checking account

42
Q

An endorsement consisting only of the endorser’s signature

A

blank endorsement

43
Q

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

A

debit card

44
Q

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

A

cash over

45
Q

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

A

endorsement

46
Q

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

A

electronic funds transfer

47
Q

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

A

bank statement

48
Q

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

A

petty cash

49
Q

A bank from listing the checks, currency, and coins that an account holder is adding to the bank account

A

deposit slip

50
Q

An endorsement restricting further of a check’s ownership

A

restrictive endorsement

51
Q

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

A

cash short

52
Q

A check that has been paid by the bank

A

canceled check

53
Q

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

A

voided check

54
Q

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

A

non-sufficient funds check

55
Q

An endorsement indicating a new owner of a check

A

special endorsement

56
Q

Reporting income when it is earned and expenses when they are incurred

A

accrual basis of accounting

57
Q

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

A

adjustment

58
Q

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

A

net income

59
Q

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

A

fiscal period

60
Q

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

A

cash basis of accounting

61
Q

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

A

work sheet

62
Q

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

A

adjusting entries

63
Q

Cash paid for an expense in one fiscal period that is not used until a later period

A

prepaid expense

64
Q

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

A

income statement

65
Q

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

A

net loss

66
Q

A financial statement that reports the value of a business;s assets, liabilities, and owner’s equity on a specific date

A

balance sheet

67
Q

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

A

trial balance

68
Q

A fiscal period consisting of 12 consecutive months

A

fiscal year

Accounting (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions