Reversed Chapter (2) Flashcards
A claim against the customer created by selling merchandise or services on credit.
account receivable
The resources owned by a business.
assets
The amount of the difference between the debits and the credits that have been entered into an account.
balance of the account
A list of the accounts in the ledger.
chart of accounts
An entry that is prepared when an error has already been journalized and posted.
correcting journal entry
The stock outstanding when a corporation has issued only one class of stock.
common stock
Amount entered on the right side of an account.
credit
Amount entered on the left side of an account.
debit
Distribution of a corporation’s earnings to stockholders.
dividends
A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits.
double-entry accounting system
Assets used up or services consumed in the process of generating revenues.
expenses
Financial analysis that compares an item in a current statement with the same item in prior statements.
horizontal analysis
The initial record in which the effects of a transaction are recorded.
journal
The form of recording a transaction in a journal.
journal entry
The process of recording a transaction in the journal.
journalizing
A group of accounts for a business.
ledger
The rights of creditors that represent debts of the business.
liabilities
The normal balance of an account can be either a debit or a credit depending on whether increases in the account are recorded as debits or credits.
normal balance of an account
The process of transferring the debits and credits from the journal entries to the accounts.
posting
Net income retained in a corporation.
retained earnings
Increases in assets from performing services or delivering products to customers.
revenues
In the double-entry accounting system, specific rules for recording debits and credits based on the type of account.
rules of debit and credit
An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.
slide
The owners’ equity in a corporation.
stockholders’ equity
The coordination and control of materials, services, information, and finances as they move in a process from supplier, through the manufacturer, wholesaler, and retailer to the consumer.
T account
An error in which the order of the digits is changed, such as writing $542 as $452 or $524.
transposition
A summary listing of the titles and balances of accounts in the ledger.
trial balance
A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.
unadjusted trial balance
The liability created by receiving revenue in advance.
unearned revenue
