ACCTCY 2037: Appendix A Notecards
21 Cards in this Set
Front | Back |
---|---|
accounts
|
used to record and retain the monetary information from transacations
|
General ledger:
|
record of all the accounts of a business
|
T-account
|
An account format with a debit (left) side and a credit (right) side.
|
Debit and Credit Rules for accounts
|
+asset Accounts- increased by debits and decreased by credits
+liability Accounts- increased by credits and decreased by debits
+owner's Equity (capital accounts)- increased by credit and decreased by debit
1) withdrawal accounts increased by debit and decreased by credit
…
|
Double entry rule
|
States that in the recording of a transaction, the total amount of the debit entries must equal the total amount of the credit entries for the transaction
|
Account Balance
|
Difference between total debits and total credits (including the beginning balance) for an account.
|
accounting cycle
|
the series of accounting activities included in recording financial information for a fiscal period
|
general journal
|
include: (1) the date of the transaction (2) the accounts to be debited and credited (3) the amounts of the debit and credit entries and (4) an explanation of each transaction
|
Posting
|
The process of transferring journal entry information from the journal to the ledger
|
chart of accounts
|
a list of all the accounts of a business and the numbers assigned to those accounts
|
Trial Balance
|
A list of each account and it's balance, used to prove equality of debits and credits.
|
Prepaid item
|
An economic resource for which a company has paid cash and that the company expects to use in its operating activities in the near future. (ex supplies, prepaid rent, prepaid insurance)
|
unearned revenue
|
an obligation of a company to provide goods or services in the future, results from an advanced receipt of cash
|
Accrued Revenue
|
Revenues that have been earned but not recorded in the accounts.
|
adjusted trial balance
|
schedule prepared to prove the quality of the equality of the debit and credit balances in a company's general ledger accounts after it has made the adjustment entries
|
transposition
|
occurs when two digits in a number are mistakenly reversed
|
slide
|
occurs when the digits are listed in the correct order but are mistakenly moved one decimal place right or left
|
closing entries
|
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, gain, expense, loss, and withdrawal (dividend for a corporation) accounts to the capital account (to retained earnings for a corporation)
|
income summary
|
temporary account a company uses in the closing process to accumulate the amount of the company's net income (or net loss) before it transfers this amount to the owner's capital account
|
Post-Closing Trial Balance
|
Should be prepared as the last step of the accounting cycle to check that debits equal credits and all temporary accounts have been closed.
|
Stockholders' Equity
|
(Common Stock, Retained Earnings.)
Dividends decrease retained earnings (and, therefore, Stockholders' equity).
|