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2011-12-21 20:53:14
Accounting vocabulary

Vocabulary words and meanings
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  1. Accounting
    Planning, recording, analyzing, and interpreting financial info.
  2. Accounting Equation
    equation showing the relationship among assets, liabilities, and owner's equity.
  3. Asset
    Anything of value that is owned
  4. Capital
    Account used to summarize the owner's equity in a business.
  5. Expense
    decrease in O.E. resulting from the operation of a business.
  6. Liability
    Amount owed by a business
  7. Revenue
    increase in owner's equity resulting from the operation of a business
  8. Withdrawals
    Assets taken out of a business for the owner's personal use.
  9. Chart of Accounts
    list of accounts used by a business
  10. Credit
    Amount recorded on right side of T account
  11. Debit
  12. T Account
    accounting device used to analyze transactions
  13. Check
    business form ordering a bank to pay cash from a bank account.
  14. Double-entry
    recording of debit and credit parts of a transaction
  15. Journal
    form for recording transactions in chronological order.
  16. Source Doc
    business paper from which info is obtained for a journal entry.
  17. File Maintenance
    procedure for arranging accounts in a gen ledger, assigning account numbers, and keeping records current.
  18. Ledger
    group of accounts
  19. Posting
    Transferring info from a journal entry to a ledger account
  20. Proving Cash
    Determining that the amount of cash agresss with the balance of the cash account in the accounting records
  21. Bank Statement
    reports of deposits, withdrawals and bank balances sent to a depositor by a bank
  22. Checking account
    bank account form which payments can be ordered by a depositor
  23. Endorsement
    signature or stamp on the back of a check, transferring ownership.
  24. Types of Endorsements?
    • Special
    • Restrictive
    • Blank
  25. Petty Cash
    Amount of cash kept on hand for small purchases
  26. Postdated check
    check with future date on it
  27. Balance Sheet
    Financial Statement that reports assets, liabilities, and owner's quity on a specific date
  28. Equation for new capital?
    Original capital+Net Income-Drawing