Objective Evidence

Using a memorandum as the source document for a

dishonored check is an application of this accounting
concept.
Matching Expenses with Revenue
Making adjustments to general ledger accounts is an
application of this accounting concept.
Adequate Disclosure
When financial statements contain all necessary
information to understand a business' financial
condition is an application of this acccounting
concept.
Accounting Period
Cycle
Preparing financial statements at the end of each
monthly fiscal period is an application of this
accounting concept.
Inaccurate accounting records
This often contributes to business
failure and bankruptcy.
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The language of business.
Proprietorship, Partnership, and
Corporation
The major forms of business
organizations.
An organization with the legal rights of a person and
which may be owned by many people.
A business in which two or more persons combine
their assets and skills>
Service Business
Business that performs an activity
or service for a fee.
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Planning, recording, analyzing, and interpreting
financial information.
A business assumes it will continue to operate for
many years. At retirement the owner will sell the
business to someone else who will continue its
operation. This is an example of the application of
this accounting concept.
A financial statement that reports assets, liabilities,
and owner's equity on a specific date.
A business owned by one person.
Financial rights to the assets of a
business.
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A business activity that changes assets, liabilities, or
owner's equity.
General Office Clerk/Assistant
A person who does general kinds of office tasks,
including some accounting tasks.
A person who does general accounting work plus
some summarizing and analyzing of accounting
information.
A person who plans, summarizes, analyzes, and
interprets accounting information.
Owner's Equity
The amount remaining after the value of all liabilites
are subtracted from the value of all assets.
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An amount of cash kept on hand and used for
making small payments.
Electronic Funds Transfer
Computerized cash payments system that uses
electronic impulses to transfer funds.
A report of deposits, withdrawals, and bank balances
sent to a depositor.
Checking Account
A bank account from which payments can be ordered
by a depositor.
Changes recorded on a work sheet to update general
ledger accounts at the end of a fiscal period.
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Income Statement
A financial statement showing the revenue and
expenses for a fiscal period.
A proof of the equality of debits and credits in a
general ledger.
A columnar accounting form used to summarize the
general ledger information needed to prepare
financial statements.
The date, debit and credit part of a transaction and
source document are all parts of this.
Closing Entries
Journal entries used to prepare tempory accounts
for a new fiscal period.
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Accounting Clerk
Entry level job that can vary with the size of the
company from specialization in one part of the
system to a wide range of record keeping tasks.
Accounts Payable
Thte amount of money owed, or payable, to the
creditors of a business.
Accounts Receivable
The total amount of money owed to
a business.
An Account whose balance decreases another
account's balance.
Double Entry
Accounting
The recording of debit and credit
parts of a transaction.
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An account showing the total assets taken out of the
business by the owner.
A decrease in owner's equity from the operation of a
business.
Financial Statement`
A report prepared to summarize the changes
resulting from business transactions that occur
during an accounting period.
General Journal
A journal with two amount columns in which all
kinds of entries can be recorded.
A gain measured in money that derives from capital
or labor; also the amount of such gain received by an
individual in a given period of time.
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Recording transactions in a journal.
A form on which a brief message is written describing
a transaction.
Post-Closing Trial Balance
A trial balance prepared after the closing entries are
posted.
Determining that amounts are in
agreement or in balance.
Determining that the amount of cash agrees with the
accounting records.
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Public Accounting
Firm
A business selling accounting services to the general
public.
To gain possession by paying money
or the equivalent.
A business form giving written acknowledgment for
cash received.
An increase in owner's equity resulting from the
operation of a business.
Special Amount
Column
A journal amount column headed
with an account title.
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Assets taken out of a business for the owner's
personal use.
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