Accounting for Funeral Service Flashcards
(182 cards)
1
Q
A device for recording the changes in the fundamental accounting elements
A
Account
2
Q
The difference between the total debits and the total credits in an account
A
Account Balance
3
Q
One who is concerned with the design of the system of records, the preparation of reports based upon the recorded data, and the interpretation of the reports
A
Accountant
4
Q
A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data
A
Accounting
5
Q
The process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting and closing entries, and preparing a post-closing trial balance, which is repeated each fiscal period
A
Accounting Cycle
6
Q
Assets = Liabilities + Owners’ Equity
A
Accounting Equation
7
Q
An unwritten promise to pay creditors for property, such as merchandise, supplies or equipment, purchased on credit, or for services received on credit
A
Account Payable
8
Q
An unwritten promise by a customer to pay, at a later date, for goods sole or services rendered
A
Account Receivable
9
Q
Measures how many times per year receivables are collected
A
Accounts Receivable Turnover
10
Q
Recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not
A
Accrual Accounting
11
Q
An expense incurred in operating a business during an accounting period, but not yet paid
A
Accrued Expense
12
Q
Income actually earned during an accounting period by which will not be received until a future period
A
Accrued Income
13
Q
Quick assets divided by current liabilities
A
Acid Test Ratio/Quick Ratio
14
Q
Measures how efficiently a firm is utilizing its assets
A
Activity Analysis
15
Q
A trial balance taken after adjusting entries have been recorded
A
Adjusted Trial Balance
16
Q
Entries made at the conclusion of a fiscal period to bring accounts up to date
A
Adjusting Entries
17
Q
Measure the average time required to collect receivables
A
Age of Accounts Receivable
18
Q
A contra account utilized to accumulate totals against accounts receivable
A
Allowance for Doubtful Accounts
19
Q
Determining the fundamental significance of business transactions so that financial information may be properly processed
A
Analyzing
20
Q
Property of monetary value owned by a business
A
Assets
21
Q
Accounts receivable that are uncollectable
A
Bad Debts Expense
Collectible Accounts Expense
Loss from Uncollectable Accounts
22
Q
A formal financial statement illustrating the assets, liabilities, and owner’s equity of a business as of a specific date
A
Balance Sheet
Statement of Financial Positions
Statement of Financial Condition
23
Q
A check drawn by one bank on another bank in which is has funds on deposit
A
Bank Draft
24
Q
The process by which the depositor attempts to reconcile the bank statement balance with the checkbook balance
A
Bank Statement Reconciliation
25
An itemized listing prepared by the bank of additions to the subtractions from a depositor's account
Bank Statement
26
A method of computing interest based on the assumption that there are 360 days in a year
Banker's Method
| 360 Day Method
27
The handwritten signature of the payee on the back of a check
Blank Endorsement
28
One who is involved in the process of recording financial information in a prescribed manner
Bookkeeper
| Information Processor
29
The recording of financial information in a prescribed manner
Bookkeeping
30
The cost of a fixed asset less its accumulated depreciation
Book Value
| Undepreciated Cost
31
A formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in financial terms
Budget
32
A twelve month period beginning January 1st and concluding on December 31st
Calendar Year
33
A check which has been paid by the bank and returned to the drawer for recordkeeping
Canceled Check
34
Coins, currency, checks, credit card receipts, and money orders received from others, as well as money deposited in the bank
Cash
35
An accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid
Cash Basis Accounting
36
Discounts from quoted prices as an inducement from prompt payment of invoices
Cash Discounts
37
Money and Money substitutes paid
Cash Payments
| Cash Disbursements
38
A book of original entry in which only cash receipts are recorded
Cash Receipts Journal
39
A special ledger account which is used to keep track of unexplained shortages or overages of cash
Cash Short and Over
40
A check drawn by a bank on its own funds and signed by an officer of the bank
Cashiers Check
41
A check which carries the guarantee of the bank that sufficient funds are available to pay the check when it is presented
Certified Check
42
An individual possessing a college education, having practical experience in accounting, and who has passed a comprehensive state examination in order to be certified to practice public accounting in that state
Certified Public Accountant
43
A list of all the account titles and the account numbers assigned to them
Chart of Accounts
44
A piece of commercial paper drawn on funds in a bank account and payable on demand
Check
45
A form on which information is recorded by the drawer of a check concerning the check drawn; a source documenr
Check Stub
46
In accounting, to record in order of time
Chronological
47
The sorting of the many business transactions in an orderly and systematic manner
Classifying
48
Entries made at the end of each reporting period to transfer the balances of the temporary owner's equity accounts to the permanent owner's equity account and to reduce the balance in the temporary owner's equity accounts to zero in preparation for the next accounting period
Closing Entries
49
A book of original entry which combines into one journal the features of the two column general journal and a special journal
Combination Journal
50
An accounting entry that involves more than two accounts
Compound Journal Entry
51
An account designed to accumulate totals to offset a related account
Contra Account
52
The right side of a standard account
Credit
53
The abbreviation for credit
Cr.
54
A condition that occurs when the total of the credits in an account is larger than the total of the debits in that account
Credit Balance
55
A source document that grants credit to a buyer for purchase return or purchase allowance
Credit Memorandum
56
A business or individual to whom debt is owned
Creditor
57
The process of entering the journal page number in the ledger and the ledger account number in the journal
Cross Referencing
58
Cash or other assets that will be converted into cash or consumed within one year
Current Asset Ratio
59
Debts of a business that are generally paid within one year
Current Liabilities
60
The left side of a standard account
Debit
61
A condition which occurs when the total of the debits in an account is larger than the total of the credits in that account
Debit Balance
62
The business or individual who owes a debt
Debtor
63
Deposits that have been made and added to depositor's checkbook, but which have not yet been listed on the bank statement
Deposits in Transit
64
A bank from which lists those cash items and individual checks to be deposited
Deposit Ticket/Slip
65
The loss in value of a fixed asset due to wear and tear and the passage of time or method of matching the cost of a fixed asset against the revenues that the fixed asset will help produce during its useful life
Depreciation
66
That portion of the original cost of a fixed asset that is assigned as an expense to the reporting period expected to benefit from its use
Depreciation Expense
67
A payment
Disbursement
68
A specific number of days during which a discount is available if the account is paid
Discount Period
69
A check not paid by the bank when properly presented
Dishonored Check
70
The process of recording equal debits and credits for a single business transaction
Double Entry Accounting
71
A person or concern, usually a bank, that has been ordered to make a payment on a check or draft
Drawee
72
A person (depositor) who signs a check, ordering a payment to be made
Drawer
73
A separate owner's equity account in which withdrawals of cash or other assets by the owner for personal use are recorded
Drawing Account
| Owner Withdrawals
74
One who is under the control and direction of an employer with regard to the performance of employment
Employee
75
The signature of the payee or other holder placed on the back of a check or other negotiable instrument
Endorsement
76
A person or company whose name is written on the back of a check
Endorser
77
E.O.M
End of Month
78
A decrease in assets, other than withdrawals by the owner which result from efforts to produce revenues
Expense
79
The principal sum the maker of a note promises to pay
Face of Note
80
The amount that an employer must withhold from an employee's pay for income tax purposes
Federal Income Tax Withholding
81
A federal act which requires most employers and employees to pay taxes to support the federal social security program
Federal Insurance Contributions Act
82
A federal act imposed upon each employer for the purpose of financing the administration costs of the federal and state unemployment compensation programs
Federal Unemployment Tax Act
83
FICA
Federal Insurance Contributions Act
84
The process of communicating the results achieved during an accounting period to others
Final Processing/Reporting
85
A period of time covered by an income statement
Fiscal Period
86
Property of a relatively permanent nature used in the operation of a business and not intended for resale
Fixed Assets/Long Term Assets
87
Liabilities that are not due and payable within one year
Fixed Liabilities/Long Term Liabilities
88
A total, written in small pencil figures, under the last entry in a column of an account
Footing/Pencil Footing
89
FUTA
Federal Unemployment Tax Act
90
A book of original entry in which business transactions are recorded in chronological order
General Journal
91
The book of accounts
General Ledger
92
Income before any deductions have been made
Gross Earnings/Gross Pay
93
Net sales minus the cost of goods sold
Gross Profit/Gross Margin
94
Gross profit divided by net sales
Gross Profit Percentage
95
A condition in which the total of the debits and the total of the credits are equal in an account
In Balance
96
An inflow of assets as a result of selling a product or providing a service
Income/Revenue
97
A formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period
Income Statement
Profit and Loss Statement
Statement of Operations
Operating Statement
98
A tax levied on the earnings of individuals and businesses by federal, state, and local governments
Income Tax
99
Any person who agrees to perform a service for a fee and who is not subject to the control of those for whom the service is performed
Independent Contractor
100
Those assets that cannot be touched or grasped
Intangible Assets
101
Money paid for the use of money
Interest
102
Explaining the significant events or developments that occur, usually taking the form of analysis and comparisons
Interpreting
103
The number of times the average inventory has been sold or used up during a period
Inventory Turnover
104
A source document showing quantity, description, prices of items, total amount of purchase, and the terms of payment
Inventory
105
The process of recording business transactions in a journal
Journalizing
106
Any debts that a business owes
Liabilities
107
Measures the ability of the firm to meet its current obligations
Liquidity Analysis
108
An individual who promises to pay on a promissory note
Maker
109
An individual who signs a promissory note
Maker
110
The date on which payment is due on a promissory note
Maturity Date
111
Goods purchased for resale at a profit
Merchandise/Inventory
112
A long term liability; A written promise that pledges real property as security for payment of a debt
Mortgage Payable
113
NSF
Not sufficient Funds
114
The difference between gross profit and expenses when gross profit is larger
Net Income/Net Profit
115
The difference between gross profit and expenses when expenses are larger
Net Loss
116
Gross pay less payroll deductions; an employee's take home pay
Net Pay/Net Earnings
117
Purchases minus purchases returns and allowances minus purchase discounts
Net Purchases
118
Sales minus sales returns and allowances minus sales discounts
Net Sales
119
A written promise to pay a creditor a certain amount in the future
Note Payable
120
A written promise of a customer to pay the business a sum of money at a future date
Note Receivable
121
Expenses incurred in the normal operation of a business
Operating Expenses/Overhead
122
The amount originally paid for a depreciable asset
Original Cost Basis
123
Expenses incurred that are not the direct result of regular trading activities of a business
Other Expenses
124
Income received that is not the direct result of regular trading activities of a business
Other Income
125
Checks that have been drawn and subtracted from the depositor's checkbook, but which have not yet been presented to the bank for payment
Outstanding Checks
126
The amount by which the total assets exceed the total liabilities of a business; an owner's financial interest in a business
Owner's Equity
Net Worth
Capital
Proprietorship
127
The issuance of a check without significant funds in the account when it is presented for payment
Overdraft
128
A person or company who will receive payment on a promissory note, check, draft, or money order
Payee
129
A fund of currency and coin established for the payment of small amounts of money
Petty Cash Fund
130
A form used to reflect payments from the petty cash fund
Petty Cash Vouchers
131
A work paper prepared after all temporary owner's equity accounts have been closed and all permanent accounts have been balanced and ruled, proving the equality of the debits and credits
Post Closing Trial Balance
132
A check dated subsequent to its date of issuance
Postdated Check
133
The transferal of data from the journal to the ledger
Posting
134
Items which are considered to be assets when acquired, but which will become expenses when consumed or expired
Prepaid Expenses
135
The face value of a promissory note upon which interest is computed
Principal
136
Net income divided by net sales
Profit Margin
137
Provides evidence concerning the earnings potential of a company and how effectively the firm is being managed
Profitability Analysis
138
A written promise made by a person or business to pay a certain sum of money to another person or business at a specified time in the future
Promissory Note
139
A process which examines each page of a journal, confirming that the debit entries equal the credit entries on each page
Proving the Journal
140
The process of determining whether the amount of cash, both on hand and in the bank, is the same as that which is indicated in the accounting records
Proving Cash
141
A source document prepared by the seller listing the items shipped, their cost and the method of shipment (from the buyer's viewpoint)
Purchase Invoice
142
A written order by a buyer for merchandise or other property specified in the purchase requisition
Purchase Order
143
A form used to request the responsible person or department to purchase merchandise or other property
Purchase Requisition
144
A temporary owner's equity account used to record the buying of merchandise for resale
Purchases
145
A temporary owner's equity contra account used to record discounts taken on inventory purchases; the amount of any discounts granted by suppliers to encourage prompt payment of their invoices
Purchases Discount
146
A book of original entry used to record purchases of merchandise on credit only
Purchases Journal
147
A temporary owner's equity contra account utilized to record the return of merchandise to the manufacturer or supplier as the result of material defects in workmanship and/or inferior product quality
Purchases Return and Allowances
148
A three month Period
Quarterly
149
Cash, marketable securities, accounts and notes receivable
Quick Assets
150
The annual percentage rate used to compute interest
Rate
151
The committing of a business transaction and the events surrounding such into writing
Recording/Data Entry
152
An endorsement which limits the use of funds to the purpose stated
Restrictive Endorsement
153
A tax imposed on tangible personal property sold at retail
Retail Sales Tax
154
Generally considered to be compensation fro managerial or administrative services expressed in terms of a month or year
Salary
155
A temporary owner's equity account used to record the earning of revenue
Sales
156
A temporary owner's equity contra account used to record discounts given to customers as an incentive for prompt payment
Sales Discount
157
A source document prepared by the seller that lists the items shipped, their cost, and the method of shipment, from the seller's viewpoint
Sales Invoice
158
A book of original entry used for the recording of sales of merchandise on credit only
Sales Journal
159
A temporary owner's equity contra account used to record credit given to a customer for shortages or damaged goods
Sales Returns and Allowances
160
The first record of a business transaction, such as check stubs, receipts, sales invoices, purchase invoices, cash register tapes, etc
Source Document/Business Paper
161
A special journal designed to accumulate data about only one kind of business transaction
Special Journal
162
A report sent to each customer, usually at the end of the month, which indicates the status of their account
Statement of Account
163
A formal financial statement which summarizes all of the changes in owner's equity during a specified period of time
Statement of Owner's Equity/Statement of Net Worth
164
A method in which the depreciable cost basis of an asset is apportioned equally over its estimated useful life expressed in terms of months or years
Straight Line Depreciation
165
An order by a depositor requesting a bank not to pay on a check previously issued
Stop Payment Order
166
Bringing accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements
Summarizing
167
A type of asset that will be consumed as it is used
Supplies
168
SUTA
State Unemployment Tax Act
169
A skeleton form of an account used for instructional purposes
T Account
170
The amount of pay after deductions have been subtracted
Take Home Pay/Net Pay
171
Those assets that can be appraised by value or seen or touched
Tangible Assets
172
Accounts utilized to accumulate income, expenses and owner's withdrawals for one accounting period only
Temporary Owner's Equity
173
The period of time from the date of the note to the maturity date
Time/Term of Note
174
Any activity of a business enterprise that involves the exchange of values
Transaction
175
The effect of transactions on the accounting elements
Transaction Analysis
176
An amount written with the digits in incorrect order
Transposition Error
177
A work paper proving the equality of the debit and credit balances in the ledger
Trial Balance
178
The estimated determinable life of a fixed asset
Useful Life
179
Wage and Tax statement; a report furnished by the employer for each employee indicating gross earnings and deductions for income and FICA taxes
W-2 form
180
Employee's withholding allowance certificate
W-4 form
181
A form of compensation usually for skilled and unskilled labor, expressed in terms of hours, weeks, or pieces completed
Wage
182
An expanded trial balance utilized for computing, classifying, and sorting account balances before preparing the formal financial statements
Worksheet
