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Mortuary Management > Accounting Glossary > Flashcards

Accounting Glossary Flashcards

1
Q

A device for recording the changes (increases or decreases) in the fundamental accounting elements

A

Account

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2
Q

An unwritten promise to pay creditors for property, such as merch, supplies or equipment, purchased on credit, or for services received on credit

A

Account Payable

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3
Q

An unwritten promise by a customer to pay, at a later date, for goods sold or services rendered

A

Account Receivable

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4
Q

Measures how many times per year receivables are collected. Calculation net credit sales divided by Average Accounts Receivable.
(Beginning Accounts Receivable - Ending Accounts Receivable) divided by 2

A

Accounts Receivable Turnover

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5
Q

Recording in each fiscal period applicable expenses, whether paid or not, and income earned

A

Accrual Accounting

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6
Q

An expense incurred in operating a business during an accounting period, but not yet paid

A

Accrued Expense

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7
Q

Income actually earned during an accounting period but which will not be received until a future period

A

Accrued Income

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8
Q

Quick assets
___________________
Current liabilities

A

Acid Test Ratio / Quick Ratio

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9
Q

Measures how efficiently a firm is utilizing its assets

A

Activity Analysis

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10
Q

Entries made at the conclusion of a fiscal period to ring accounts up to date

A

Adjusting Entries

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11
Q

Measures the average time required to collect receivables

A

Age of Accounts Receivable

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12
Q

360 days
_____________
Accounts Receivable Turnover

A

Calculation

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13
Q

Allowance for Bad Debts
A contra account utilized to accumulate totals against accounts receivable

A

Allowance for Doubtful Accounts

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14
Q

Determining the fundamental significance of business transactions so that financial information may be properly processed

A

Analyzing

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15
Q

Accounts receivable that is uncollectible

A

Debts Expense / Uncollectible Accounts Expense / Loss from Uncollectible Accounts

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16
Q

A check drawn by one bank on another bank in which it has funds on deposit

A

Bank Draft

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17
Q

The process by which the depositor attempts to reconcile the bank statement balance with the checkbook balance

A

Bank Statement Reconciliation

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18
Q

An itemized listing prepared by the bank of additions to the subtractions from a depositor’s account

A

Bank Statement

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19
Q

A method of computing interest based on the assumption that there are 360 days in a year

A

Banker’s Method / 360 Day Method

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20
Q

One who is involved in the process of recording financial information in a prescribed manner

A

Bookkeeper / Information Processor

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21
Q

The recording of financial information in a prescribed manner

A

Bookkeeping

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22
Q

The cost of a fixed asset less its accumulated depreciation

A

Book Value / Undepreciated Cost

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23
Q

A formal written statement, which may be based upon adjusted historical data, of management’s plans for the future expressed in financial terms

A

Budget

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24
Q

A check that has been paid by the bank and returned to the drawer for record keeping

A

Cancelled Check

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25
Q

The amount by which the total assets exceed the total liabilities of a business; An owner’s financial interest in a business

A

Capital

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26
Q

Coins, currency (paper money), checks, credit card receipts and money orders received from others, as well as money deposited in the bank

A

Cash

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27
Q

An accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid

A

Cash Basis Accounting

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28
Q

Discounts from quoted prices as an inducement for prompt payment of invoices

A

Cash Discounts

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29
Q

Money and money substitutes paid

A

Cash Payments / Cash Disbursements

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30
Q

A special ledger account that is used to keep track of unexplained shortages or overages of cash

A

Cash Short and Over

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31
Q

A check drawn by a bank on its own funds and signed by an officer of the bank

A

Cashiers Check

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32
Q

A check that carries the guarantee of the bank that sufficient funds are available to pay the check when it is presented

A

Certified Check

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33
Q

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

A

Certified Public Account (C.P.A)

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34
Q

A list of all the account titles and the account numbers assigned to them

A

Chart of Accounts

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35
Q

A piece of commercial paper drawn on funds in a bank account and payable on demand

A

Check

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36
Q

A form on which information is recorded by the drawer of a check concerning the check drawn
A source document

A

Check Stub

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37
Q

In accounting, to record in order of time.

A

Chronological

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38
Q

A book of original entry which combines into one journal, the features of the two column general journal and a special journal

A

Combination Journal

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39
Q

An accounting entry that involves more than two accounts

A

Compound Journal Entry

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40
Q

An account designed to accumulate totals to offset a related account

A

Contra Account

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41
Q

The abbreviation for credit

A

CR

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42
Q

A condition that occurs when the total of the credits in an account is larger than the total of the debits in that account

A

Credit Balance

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43
Q

A source document that grants credit to a buyer for purchase return of purchase allowance

A

Credit Memorandum

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44
Q

A business or individual to whom a debit is owed

A

Creditor

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45
Q

A process of entering the journal page number in the ledger and the ledger account number in the journal

A

Cross Referencing

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46
Q

Cash or other assets that will be converted into cash or consumed within one year

A

Current Assets

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47
Q

Current assets
____________________
Current Liabilities

A

Current Asset Ratio

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48
Q

Debts of a business that are general paid within one year

A

Current Liabilities

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49
Q

A condition that occurs when the total of the debits in an account is larger than the total of the credits in that account

A

Debit Balance

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50
Q

The business or individual who owes a debt

A

Debtor

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51
Q

Deposits that have been made and added to depositor’s checkbook, but which have not yet been listed on the bank statement

A

Deposits in Transit

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52
Q

A bank form which lists those cash items (currency and coin) and individual checks to be deposited

A

Deposit Ticket / Deposit Slip

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53
Q

The loss in value of a fixed asset due to wear and tear and the passage of time; or, a method of matching the cost of a fixed asset against the revenues that the fixed asset will help produce during its useful life

A

Depreciation

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54
Q

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

A

Depreciation Expense

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55
Q

A payment

A

Disbursement

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56
Q

A specific number of days during which a discount is available if the account is paid

A

Discount Period

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57
Q

A check not paid by the bank when properly presented

A

Dishonored Check

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58
Q

A process of recording equal debits and credits for a single business transaction

A

Double Entry Accounting / Double Entry Bookkeeping

59
Q

A separate owner’s equity account in which withdrawals of cash or other assets by the owner for personal use are recorded

A

Drawing Account / Owner Withdrawal

60
Q

One who is under the control and direction of an employer with regard to the performance of employment

A

Employee

61
Q

The signature of the payee or other holder placed on the back of a check or other negotiable instrument

A

Endorsement (Indorsement)

62
Q

A person or company whose name is written on the back of a check

A

Endorser

63
Q

A decrease in assets, other than withdrawals by the owner, which result from efforts to produce revenues

A

Expense

64
Q

The principle sum the maker of a note promises to pay

A

Face of Note

65
Q

The amount that an employer must withhold from an employee’s pay for income tax purposes

A

Federal Income Tax Withholding

66
Q

A federal act imposed upon each employer for the purpose of financing the administration costs of the federal and the state unemployment compensation programs

A

Federal Unemployment Tax Act

67
Q

The process of communicating the results achieved during an accounting period to others

A

Final Processing / Reporting

68
Q

A period of time covered by an income statement

A

Fiscal Period

69
Q

Property of a relatively permanent nature used in the operation of a business and not intended for resale

A

Fixed Assets / Long Term Assets

70
Q

Property of a relatively permanent nature used in the operation of a business and not intended for resale

A

Fixed Liabilities / Long Term Liabilities

71
Q

A total, written in small pencil figures, under the last entry in a column of an account

A

Footing / Pencil Footing

72
Q

FUTA

A

Federal Unemployment Tax Act

73
Q

Net sales minus the cost of goods sold

A

Gross Profit / Gross Margin

74
Q

Gross profit divided by net sales

A

Gross Profit Percentage

75
Q

A condition in which the total of the debits and the total of the credits are equal in an account

A

In Balance

76
Q

An inflow of assets as a result of selling a product or providing a service

A

Income / Revenue

77
Q

A formal financial statement which presents the income, expenses, and resulting net profit or net loss for a given period

A

Income Statement / Profit and Loss Statement / Statement of Operations / Operating Statement

78
Q

A tax levied on the earnings of individuals and businesses by federal, state, and local governments

A

Income Tax

79
Q

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

A

Independent Contractor

80
Q

Those assets that cannot be touched or grasped (examples: patents, copyrights, goodwill)

A

Intangible Assets

81
Q

Money paid for the use of money

A

Interest

82
Q

Explaining the significant events or developments that occur, usually taking the form of analysis and comparisons

A

Interpreting

83
Q

The number of times the average inventory has been sold or used up (turn over) during a period
Calculation: 365 / Cost of Goods Sold for Period / Average Inventory

Note: Average Inventory = (Beginning inventory + Ending Inventory) divided by 2

A

Inventory Turnover

84
Q

A source document showing quantity, description, prices of items, total amount of purchase and the terms of payment

A

Inventory

85
Q

Measures the ability of the firm to meet its current obligations

A

Liquidity Analysis

86
Q

An individual who promises to pay on a promissory note; an individual who signs a promissory note

A

Maker

87
Q

The date on which payment is due on a promissory note

A

Maturity Date

88
Q

A long-term liability; a written promise that pledges real property as security for payment of a debt

A

Mortgage Payable

89
Q

NSF

A

Not Sufficient Funds

90
Q

The difference between gross profit and expenses when gross profit are larger

A

Net Income / Net Profit

91
Q

The difference between gross profit and expenses when expenses are larger

A

Net Loss

92
Q

Gross pay less payroll deductions; employees take home pay

A

Net Pay / Net Earnings

93
Q

A written promise to pay a creditor a certain amount in the future

A

Note Payable

94
Q

A written promise of a customer to pay the business a sum of money at a future date

A

Note Receivable

95
Q

Expenses incurred in the normal operation of a business

A

Operating Expenses / Overhead

96
Q

The amount originally paid for a depreciable asset

A

Original Cost Basis

97
Q

Expenses incurred that is not the direct result of regular trading activities of a business

A

Other Expenses

98
Q

Income received that is not the direct result of regular trading activities of a business

A

Other Income

99
Q

Checks that have been drawn and subtracted from the depositor’s checkbook, but which have not yet been presented to the bank for payment

A

Outstanding Checks

100
Q

The issuance of a check without sufficient funds in the account when it is presented for payment

A

Overdraft

101
Q

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

A

Post Closing Trail Balance

102
Q

A check dated subsequent to (following) its date of issuance

A

Postdated Check

103
Q

Items that are considered to be assets when acquired, but which will become expenses when consumed or expired

A

Prepaid Expenses

104
Q

A face value of a promissory note upon which interest is computed

A

Principal

105
Q

Net income
_____________
Net sales

A

Profit Margin

106
Q

Profitability Analysis

A

Provides evidence concerning the earnings potential of a company and how effectively the firm is being managed

107
Q

Promissory Note

A

A written promise made by a person or business to pay a certain sum of money to another person or business at a specific time in the future

108
Q

Proving Cash

A

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

109
Q

Purchase Invoice

A

A source document prepared by the seller listing the items shipped, their cost and the method of shipment (from the buyer’s viewpoint)

110
Q

Purchase Order

A

A written order by a buyer for merchandise or other property specified in the purchase requisition

111
Q

Purchase Requisition

A

A form used to request the responsible person or department to purchase merchandise or other property

112
Q

Purchases

A

A temporary owner’s equity account used to record purchases of merchandise for resale

113
Q

Purchases Returns and Allowances

A

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

114
Q

Quarterly

A

A three month period

115
Q

Quick Assets

A

Cash, marketable securities, accounts and notes receivable

116
Q

Rate

A

The annual percentage rate used to compute interest

117
Q

Recording / Data Entry

A

The committing of a business transaction and the events surrounding such into writing

118
Q

Retail Sales Tax

A

A tax imposed on tangible personal property sold at retail

119
Q

Salary

A

Generally considered to be compensation for managerial or admin services, expressed in terms of a month or year

120
Q

A temporary owner’s equity account used to record the earning of revenue

A

Sales

121
Q

A temporary owner’s equity contra account used to record discount given to customers as an incentive for prompt payment

A

Sales Discount

122
Q

Sales Invoice

A

A source document prepared by the seller that lists the items shipped, their cost and the method of shipment (from the seller’s viewpoint)

123
Q

The first record of a business transaction, such as check stubs, receipts, sales invoices, purchase invoices, cash register tapes, etc etc

A

Source Document / Business Paper

124
Q

A special journal designed to accumulate data about only one kind of business transaction

A

Special Journal

125
Q

A report sent to each customer, usually at the end of the month, which indicates the status of their account

A

Statement of Account

126
Q

A formal financial statement illustrating the assets, liabilities, and owner’s equity of a business as of a specific date

A

Statement of Financial Condition / Statement of Financial Position

127
Q

A formal financial statement which summarizes all of the changes in owner’s equity during a specified period of time

A

Statement of Owner’s Equity / Statement of Net Worth

128
Q

An order by a depositor requesting a bank not to pay on a check previously issued

A

Stop Payment Order

129
Q

Bringing accounting data together in a way that will further enhance its usefulness, usually by means of reports and statements

A

Summarizing

130
Q

A type of asset that will be consumed as it is used

A

Supplies

131
Q

SUTA

A

State Unemployment Tax Act

132
Q

The amount of pay after deductions (income taxes, FJCA taxes, etc.) have been subtracted

A

Take Home Pay / Net Pay

133
Q

Tangible Assets

A

Those assets that can be appraised by value or seen or touched

134
Q

Temporary Owner’s Equity Accounts

A

Accounts utilized to accumulate income, expenses and owner’s withdrawals for one accounting period only

135
Q

Time / Term of Note

A

The period of time from the date of the note to the maturity date

136
Q

Transaction Analysis

A

The effect of transactions on the accounting elements

137
Q

Transaction

A

Any activity of a business enterprise that involves the exchange of values

138
Q

Transposition Error

A

An amount written with the digits in incorrect order

139
Q

Useful Life

A

The estimated determinable life of a fixed asset

140
Q

W-2 Form - Wage and Tax Statement

A

A report furnished by the employer for each employee indicating gross earnings and deductions for income and FICA taxes

141
Q

W-4 Form

A

Employees’ Withholding Allowance Certificate

142
Q

Wage

A

A form of compensation usually for skilled and unskilled labor, expressed in terms of hours, weeks, or pieces completed

143
Q

The sorting of the many business transactions in an order and systematic manner

A

Classifying

Mortuary Management (8 decks)

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