Office Accounting Exam 2 Flashcards Preview

Trakesha's 4th Quarter > Office Accounting Exam 2 > Flashcards

Flashcards in Office Accounting Exam 2 Deck (28):
1

the journal or the first formal accounting record of a transaction

book of original entry

2

a list of all accounts used by a business

chart of accounts

3

a general journal entry that affects more than two accounts

compound entry

4

an entry to correct an incorrect entry that has been journalized and posted to the wrong account

correcting entry

5

the information in the Posting Reference columns of the journal and ledger that provides a link between the journal and ledger

cross-reference

6

a complete set of all accounts used by a business. It accumulates a complete record of the debits and credits made to each account as a result of entries made in the journal

general ledger

7

a day to day listing of the transactions of a business

journal

8

entering the transactions in a journal

journalizing

9

copying debits and credits from the journal to the ledger accounts

posting

10

a method of correcting an entry in which a line is drawn through the error and the correct information is placed above it

ruling method

11

an error that occurs when debit or credit amounts "slide" a digit or two to the left or right

slide error

12

any document that provides information about a business transaction

source document

13

an error that occurs when two digits are reversed

transposition error

14

a lost used to prove that the totals of the debit and credit balances in the ledger accounts are equal

trial balance

15

a journal with only two amount columns, one for debit amounts and one for credit amounts

two-column general journal

16

a method of accounting under which revenues are recorded when earned and expenses are recorded when incurred

accrual basis of accounting

17

the third pair of amount columns on the work sheet. They are used to prove the equality of the debits and credits in the general ledger accounts after making all end-of-period adjustments

adjusted trial balance columns

18

journal entries made at the end of an accounting period to reflect changes in account balances that are not the direct result of an exchange with an outside party

adjusting entries

19

the work sheet columns that show the amounts that will be reported in the balance sheet and the statement of owner's equity

balance sheet columns

20

the difference between the asset account and its related accumulated depreciation account. The value reflected by the accounting records

book value

21

a method of accounting under which revenues are recorded when cash is received and expenses are recorded when cash is paid

cash basis accounting

22

an account with a credit balance that is deducted from the related asset account on the balance sheet

contra asset

23

the cost of an asset that is subject to depreciation

depreciable cost

24

a method of matching an asset's original cost against the revenues produced over its useful life

depreciation

25

a 12 month period for which financial reports are prepared

fiscal year

26

a principle that requires assets to be recorded at their actual cost

historical cost principle

27

the work sheet columns that show the amounts that will be reported In the income statement

income statement columns

28

the amount an item can be sold for under normal economic conditions

market value