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Intro To Business And Technology > Accounting > Flashcards

Flashcards in Accounting Deck (62)
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1

The action or process of keeping financial accounts

accounting

2

The steps involved in accounting for all of the business activities during an accounting period

accounting cycle

3

The most fundamental equation of double-entry bookkeeping system, it expresses the relationship between what is owned and what is owed by an entity

accounting equation

4

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit

assets

5

An obligation of an entity arising from past transactions or events

liability

6

owners' interest in the assets of a business

owner's equity

7

relating to or being assets that add to the long-term net worth of a corporation

capital

8

listed on the left-hand side or column of an account. It affects the balance in the account by adding to the balance

debit

9

listed on the right-hand side or column of an account. It affects the balance in the account by taking away from it

Credit

10

Income that a company receives from its normal business activities

revenue

11

costs that are matched with revenues

expenses

12

a financial statement that gives operating results for a specific period

income statement

13

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time

balance sheet

14

a financial statement that shows the effect of net income and owner withdrawals on the owner's interest in the business

statement of owner's equity

15

financial statement that displays cash inflows and outflows for a period

cash flow statement

16

calculation of elements of the income statement as a percentage of net sales or elements of the balance sheet as a percentage of total assets

vertical analysis

17

calculation of the percentage of change between accounting periods for elements of the income statement or balance sheet

horizontal analysis

18

measures of a businesses ability to pay debts in the short term

liquidity ratios

19

measures a businesses ability to use assets to create a profit

profitability ratios

20

measures a business ability to pay debt in the long term

solvency ratios

21

First Step of the Accounting Cycle

Analyze Transactions

22

Second Step of the Accounting Cycle

Journalize Transactions

23

Third Step of the Accounting Cycle

Post Transactions

24

Fourth Step of the Accounting Cycle

Create a Trial Balance

25

Fifth Step of the Accounting Cycle

Gather Adjusting Entries

26

Sixth Step of the Accounting Cycle

Prepare Financial Statements

27

Seventh Step of the Accounting Cycle

Journalize and Post the Adjusting Entries and the Closing Entries

28

Eighth Step of the Accounting Cycle

Prepare a Post-Closing Trial Balance

29

First 4 steps of the accounting cycle (1-4)

1. Analyze Transactions 2. Journalize Transactions 3. Post Transactions 4. Create a Trial Balance

30

Last 4 steps of the accounting cycle (5-8)

5. Gather Adjusting Entries 6. Prepare Financial Statements 7. Journalize and Post the Adjusting Entries and the Closing Entries 8. Prepare a Post-Closing Trial Balance