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Flashcards in Reversed Chapter (2) Deck (29):
1

A claim against the customer created by selling merchandise or services on credit.

account receivable

2

The resources owned by a business.

assets

3

The amount of the difference between the debits and the credits that have been entered into an account.

balance of the account

4

A list of the accounts in the ledger.

chart of accounts

5

An entry that is prepared when an error has already been journalized and posted.

correcting journal entry

6

The stock outstanding when a corporation has issued only one class of stock.

common stock

7

Amount entered on the right side of an account.

credit

8

Amount entered on the left side of an account.

debit

9

Distribution of a corporation’s earnings to stockholders.

dividends

10

A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits.

double-entry accounting system

11

Assets used up or services consumed in the process of generating revenues.

expenses

12

Financial analysis that compares an item in a current statement with the same item in prior statements.

horizontal analysis

13

The initial record in which the effects of a transaction are recorded.

journal

14

The form of recording a transaction in a journal.

journal entry

15

The process of recording a transaction in the journal.

journalizing

16

A group of accounts for a business.

ledger

17

The rights of creditors that represent debts of the business.

liabilities

18

The normal balance of an account can be either a debit or a credit depending on whether increases in the account are recorded as debits or credits.

normal balance of an account

19

The process of transferring the debits and credits from the journal entries to the accounts.

posting

20

Net income retained in a corporation.

retained earnings

21

Increases in assets from performing services or delivering products to customers.

revenues

22

In the double-entry accounting system, specific rules for recording debits and credits based on the type of account.

rules of debit and credit

23

An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.

slide

24

The owners’ equity in a corporation.

stockholders’ equity

25

The coordination and control of materials, services, information, and finances as they move in a process from supplier, through the manufacturer, wholesaler, and retailer to the consumer.

T account

26

An error in which the order of the digits is changed, such as writing $542 as $452 or $524.

transposition

27

A summary listing of the titles and balances of accounts in the ledger.

trial balance

28

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.

unadjusted trial balance

29

The liability created by receiving revenue in advance.

unearned revenue