Studied by 8 people
Accounting cycle
The set of accounting procedures performed in each fiscal period
Transposed
the name used to describe when the order of a numbers digits has been switched
Fiscal period
The date on an Income Statement is shown as a
Comp. entry
The type of entry when there are more than one debit and/or credit.
Jounal Page
The information that goes into the ledger PR Column.
Ledger #
The information that goes into the journa
Posting reference
"PR" is short for?
Chart of accounts
A list of all accounts used by a business is found here.
Posting
The process of transferring information from the General Journal to the General Ledger.
Indented
In the General Journal, the credit entry is distinguished from the debit entry because it is recorded second and_
Opening Entry
The name for the first journal entry to start-up the business.
Journalizing
the process of entering information into the journal
Debit
these entries are always recorded first in the journal
Book of original entry
Another name for the General Journal.
Chronological
The General Journal lists transactions in this order.
Revenue recognition
This IFRS rule states that revenue is recorded when cash is received or an invoice sent.
Income St
The financial statement that is prepared first, after the trial balance.
Inc capital
when that income is greater than drawings
Net loss
When revenue is less than expenses.
Net income
When revenue is greater than expenses
matching principal
This IFRS rule states that expenses should be recorded in the same fiscal period as a revenues they help generate
Expenses
Money spent in the routine operation of the business.
Revenue
Money earned from the sale of goods or services.
objectivity principal
This IFRS rule states that accounting records must be based on evidence and that evidence comes from source documents.
Goods and services
A business can sell these two things.
time period
This IFRS rule states that accounting must be measured over equal lengths of time.
Credit
Revenue accounts increase with this type of entry
Cash Sales slip
This source document provides details about a cash sale.
bank credit memo
This notice from the bank indicates that your bank account has been increased.
double entry accounting
The system of accounting when the total debit entry must equal the total of the credit entry.
Sales invoice
This source document is used for sales on account.
Debit
Expenses increase with this type of entry
Drawings
This account is used when the owner withdraws assets from the business
Purchase invoice
When recording a purchase on account you would use this Source document.
Bank debit memo
This notice from the bank indicates your bank account has been decreased
Who uses income statements
Owners and managers, bankers, income tax authorities
fiscal period
the period of time over which earnings are measured
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.
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
Note 
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