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Accounting Terms A-C

Accounting Terms A-C

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Items (93)

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

    Closing entries

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

    Contra account

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

    Checking account

  • Reporting income when earned and expenses when incurred

    Accrual basis of accounting

  • The amount of total income minus adjustments, reported on Form 1040

    Adjusted gross income

  • An endorsement consisting only of the endoser's signature

    Blank endorsement

  • The cash receipts and cash payments of a company

    Cash flow

  • An amount recorded on the right side of an account

    Credit

  • A statement that guides the ethical behavior of a company and its employees

    Code of conduct

  • The assets or other financial resources available to a business

    Capital

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

    Adjustments

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

    Balance sheet

  • Amounts to be paid in the future for goods or services already acquired

    Accounts payable

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

    Allowance method

  • A financial road map used by individuals and companies as a guide for spending and saving

    Budget

  • A receipt signed by the agent of a transportation company for merch received that also serves as a contract for delivery of merch

    Bill of lading

  • The legal right for a business to conduct operations as a corporation

    Charter

  • Interest earned but not yet received

    Accrued interest income

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

    Batch rerport

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

    Cost of capital

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

    Accrued expenses

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

    Amortization

  • The chief accountant in an organization, having responsibility for both financial and managerial accounting activities

    Controller, Comptroller

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

    Current ratio

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

    Accounting equation

  • A legal document that identifies basic characteristics of a corp., part of the application submitted to a state to become a corp.

    Articles of incorporation

  • An account worker who processes routine details about accounting transactions

    Accounting clerk

  • The total shares of ownership in a corporation

    Capital stock

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

    Corporation

  • Amounts to be received in the future due to the sale of goods or services

    Accounts receivable

  • A trial balance prepared after adjusting entries are posted

    Adjusted trial balance

  • Financial statements that provide information for multiple fiscal periods

    Comparative financial statements

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

    Cash sale

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

    Accounting system

  • A subsidiary ledger containing all accounts for charge customers

    Accounts receivable ledger

  • A check which has been paid by the bank

    Canceled check

  • Interest paid on an original amount deposited in a bank plus any interest that has been paid

    Compound interest

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

    Bond

  • Analyzing accounts receivable according to when they are due

    Aging of accounts receivable

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

    Account

  • An accountant who has passed the uniform certified public accounting exam and met the licensing requirement for a state

    Certified public accountant (CPA)

  • The value of an asset determined by tax authorities for the purpose of calculating taxes

    Assessed value

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

    Board of directors

  • The field of accounting that identifies and measures costs

    Cost accounting

  • The difference between the increases and decreases in an account

    Account balance

  • Allocating factory overhead based on the level of major activities

    Activity-based costing (ABC)

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

    Cost of merchandise sold, cost of goods sold, cost of sales

  • An examination of financial records, accounts, and supporting documents to check their accuracy

    Audit

  • A statement showing a detailed listing and description of merchandise sold to the buyer, including prices and terms

    Commercial invoice

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

    Beginning inventory

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

    Accounting

  • The maximum outstanding balance allowed to a customer by a vendor

    Credit limit

  • A paper or electronic path that provides a documented history of a transaction

    Audit trail

  • An account used to summarize owner's equity in a business

    Capital account

  • A special journal used to record only cash receipt transactions

    Cash receipts journal

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

    Batching out

  • The accountant who conducts the audit

    Auditor

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

    Cost of merchandise

  • A method of paying an employee based on the amount of sales the employee generates

    Commission

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

    Business plan

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

    Accrual

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

    Contract of sale

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

    Check

  • All bonds representing the total amount of a loan

    Bond issue

  • A person or business to whom a liability is owned

    Creditor

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

    Credit memorandum

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

    Cash basis of accounting

  • Liabilities due within a short time, usually a year

    Current liabilities

  • A standard used to compare financial performance

    Benchmark

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

    Capital expenditures

  • A list of accounts used by a business

    Chart of accounts

  • The total gross earnings year to date for an employee

    Accumulated earnings

  • The number assinged to an account

    Account number

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

    Cash discount

  • An additional journal entry that fixes improperly journalized transactions

    Correcting entry

  • The subsidiary ledger containing vendor accounts

    Accounts payable ledger

  • Anything of value that is owned

    Asset

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

    Cash over

  • The difference between an asset's account balance and its related contra account balance

    Book value

  • A special journal used to record only cash payment transactions

    Cash payments journal

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

    Bank statement

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

    Current assets

  • Revenue earned in one fiscal period but not received until a later fiscal period

    Accrued revenue

  • A qualified retirement plan sponsored by an employer

    401(k)

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

    Cash short

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

    Accelerated depreciation

  • Interest incurred but not paid

    Accrued interest expense

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

    Accounting cycle

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

    Collateral

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

    Adjusting entries

  • The name given to an account

    Account title

  • The total amount of depreciation expense that has been recorded since the purchase of a plant asset

    Accumulated depreciation

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

    Controlling account