UIL Accounting Concepts Practice Flashcards

Vocabulary and formula flashcards covering concepts for District, Regional, and State levels of the UIL Accounting Contest.

T-accounts

Tools used to analyze transactions at the District Level of the UIL Accounting contest.

Compound entry

A journal entry that involves more than two accounts, recorded in the General Journal.

Adjusting entries

Entries recorded to account for expired costs such as Supplies, Insurance, and Merchandise Inventory.

Closing entries

Entries made to transfer temporary capital account balances to the capital account.

Post-Closing Trial Balance

A trial balance prepared after closing entries that contains permanent accounts only.

FOB Destination and FOB Shipping Point

Terms of sale used to determine shipping charges and responsibility for payment.

Contra Purchases accounts

Specific accounts including Purchases Discounts and Purchases Returns & Allowances.

Contra Sales accounts

Specific accounts including Sales Discounts and Sales Returns & Allowances.

Transportation In

The cost of delivered merchandise, included in the calculation of net purchases.

Business Entity

An accounting assumption that treats a business as a separate entity from its owners.

Going Concern

An accounting assumption that a business will continue to operate indefinitely.

Historical Cost

Also known as the Revenue Principle, this principle requires recording assets at their original purchase price.

Book value of Accounts Receivable

Calculated by the formula $A/R - \text{Allowance for Uncollectible Accounts (AUA)}$.

Depreciation methods

Methods such as straight-line, units-of-production, and accelerated methods (declining balance or sum-of-the-years’-digits) used for plant assets.

Salvage value

A factor used in depreciation calculations, also referred to as trade-in value, disposal value, or scrap value.

Book value of plant asset

Calculated as $\text{Asset} - \text{Accumulated Depreciation}$.

Inventory costing methods

Methods used to determine inventory value, including FIFO, LIFO, Weighted-Average, and Specific Identification.

Gross profit method

A method used for estimating the value of ending inventory.

Return on Stockholders’ Equity SE

Calculated using the formula $\frac{\text{Net Earnings}}{\text{Average SE}}$ where Average SE is $\frac{\text{Beg. SE} + \text{End. SE}}{2}$.

Interest-bearing notes

Promissory notes where the repayment includes the principal plus interest based on a specific interest rate.

Non-interest-bearing notes

Notes where interest is deducted in advance, and repayment is made for the face value of the note.

Discount on Notes Payable

A contra-liability account used for non-interest-bearing notes.

Book Value of N/P

Calculated as $\text{N/P} - \text{Disc. on N/P}$.

Accruals & Deferrals

Adjusting entries used to recognize revenues and expenses in the period they occur; include reversing entries.