Accounting Unit 3 and 4
5.0(1)
Studied by 8 people
Knowt Play
Learn
Practice Test
Spaced Repetition
Match
FlashcardsCard Sorting
1/38
Earn XP
Description and Tags
Study Analytics
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
39 Terms
1
New cards
Accounting cycle
The set of accounting procedures performed in each fiscal period
2
New cards
Transposed
the name used to describe when the order of a numbers digits has been switched
3
New cards
Fiscal period
The date on an Income Statement is shown as a
4
New cards
Comp. entry
The type of entry when there are more than one debit and/or credit.
5
New cards
Jounal Page
The information that goes into the ledger PR Column.
6
New cards
Ledger #
The information that goes into the journa
7
New cards
Posting reference
"PR" is short for?
8
New cards
Chart of accounts
A list of all accounts used by a business is found here.
9
New cards
Posting
The process of transferring information from the General Journal to the General Ledger.
10
New cards
Indented
\
In the General Journal, the credit entry is distinguished from the debit entry because it is recorded second and_
In the General Journal, the credit entry is distinguished from the debit entry because it is recorded second and_
11
New cards
Opening Entry
The name for the first journal entry to start-up the business.
12
New cards
Journalizing
\
the process of entering information into the journal
the process of entering information into the journal
13
New cards
Debit
\
these entries are always recorded first in the journal
these entries are always recorded first in the journal
14
New cards
Book of original entry
\
Another name for the General Journal.
Another name for the General Journal.
15
New cards
Chronological
The General Journal lists transactions in this order.
16
New cards
Revenue recognition
\
This IFRS rule states that revenue is recorded when cash is received or an invoice sent.
This IFRS rule states that revenue is recorded when cash is received or an invoice sent.
17
New cards
Income St
The financial statement that is prepared first, after the trial balance.
\
\
\
\
18
New cards
Inc capital
when that income is greater than drawings
19
New cards
Net loss
When revenue is less than expenses.
20
New cards
Net income
When revenue is greater than expenses
21
New cards
matching principal
This IFRS rule states that expenses should be recorded in the same fiscal period as a revenues they help generate
22
New cards
Expenses
\
Money spent in the routine operation of the business.
Money spent in the routine operation of the business.
23
New cards
Revenue
\
Money earned from the sale of goods or services.
Money earned from the sale of goods or services.
24
New cards
objectivity principal
This IFRS rule states that accounting records must be based on evidence and that evidence comes from source documents.
25
New cards
Goods and services
\
A business can sell these two things.
A business can sell these two things.
26
New cards
time period
\
This IFRS rule states that accounting must be measured over equal lengths of time.
This IFRS rule states that accounting must be measured over equal lengths of time.
27
New cards
Credit
\
Revenue accounts increase with this type of entry
Revenue accounts increase with this type of entry
28
New cards
Cash Sales slip
\
This source document provides details about a cash sale.
This source document provides details about a cash sale.
29
New cards
bank credit memo
\
This notice from the bank indicates that your bank account has been increased.
This notice from the bank indicates that your bank account has been increased.
30
New cards
double entry accounting
\
The system of accounting when the total debit entry must equal the total of the credit entry.
The system of accounting when the total debit entry must equal the total of the credit entry.
31
New cards
Sales invoice
\
This source document is used for sales on account.
This source document is used for sales on account.
32
New cards
Debit
\
Expenses increase with this type of entry
Expenses increase with this type of entry
33
New cards
Drawings
This account is used when the owner withdraws assets from the business
34
New cards
Purchase invoice
\
When recording a purchase on account you would use this Source document.
When recording a purchase on account you would use this Source document.
35
New cards
Bank debit memo
\
This notice from the bank indicates your bank account has been decreased
This notice from the bank indicates your bank account has been decreased
36
New cards
Who uses income statements
Owners and managers, bankers, income tax authorities
37
New cards
fiscal period
the period of time over which earnings are measured
38
New cards
The Accrual Basis of Accounting
\
Revenue should be recognized when it is earned. The job or service must be completed. Expenses are Recorded when incurred. It doesn’t matter if it is cash or credit transaction.
Revenue should be recognized when it is earned. The job or service must be completed. Expenses are Recorded when incurred. It doesn’t matter if it is cash or credit transaction.
39
New cards
accounts numbering system
100-199 Asset Accounts
200-299 Liability Accounts
300-399 Owner’s Equity Accounts
400-499 Revenue Accounts
500-599 Expense Accounts
200-299 Liability Accounts
300-399 Owner’s Equity Accounts
400-499 Revenue Accounts
500-599 Expense Accounts