Accounting - Cycle 2

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Author:
kaylacody17
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139936
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Accounting - Cycle 2
Updated:
2012-03-05 22:57:06
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accounting cycle
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Vocabulary
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  1. accounts payable ledger
    a subsidiary ledger containing only accounts for vendors from whom merchandise or other items are purchased on account
  2. accounts receivable ledger
    a subsidiary ledger containing only accounts for charge customers
  3. accumulated depreciation
    that total amount of depreciation expense that has been recorded since the purchase of a plant asset
  4. allowance method of recording lossed from uncollectible accounts
    crediting the estimated value of uncollectible accounts to a contra account
  5. batch report
    a report of credit card sales produced by a point-of-sale terminal
  6. batching out
    the process of preparing a batch report of credit card sales from a point-of-sale terminal
  7. board of directors
    a group of persons elected by the stockholders to manage a corporation
  8. book value
    the difference between an asset's account balance and its related contra account balance
  9. book value of a plant asset
    the original cost of a plant asset minus accumulated depreciation
  10. book value of accounts receivable
    the difference between the balance of accounts receivable and its contra account, allowance for uncollectible accounts
  11. capital stock
    total shares of ownership in a corporation
  12. cash discount
    a deduction from the invoice amount, allowed by a vendor to encourage early payment
  13. cash over
    a petty cash on hand amount that is more than a recorded amount
  14. cash payments journal
    a special journal used to record only cash payment transactions
  15. cash receipts journal
    a special journal used to record only cash receipt transactions
  16. cash sale
    a sale in which cash is received for the total amount of the sale at the time of the transaction
  17. cash short
    a petty cash on hand amount that is less than a recorded amount
  18. contra account
    an account that reduces a related account on a financial statement
  19. controlling account
    an account in a general ledger that summarizes all accounts in a subsidiary ledger
  20. corporation
    an organization with the legal rights of a oersin and which may be owned by many persons
  21. cost of merchandise
    the price a business pays for goods it purchases to sell
  22. credit card sale
    a sale in which a credit card is used for the total amount of the sale at the time of the transaction
  23. credit memorandum
    a form prepared by the vendor showing the amount deducted for returns and allowances
  24. current assets
    cash and other assets expected to be exchanged for cash or consumed within a year
  25. current liabilities
    liabilities due within a short time, usually a year
  26. debit memorandum
    a form prepared by the customer showing the price deduction taken by the customer for returns and allowances
  27. depreciation expense
    the portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life
  28. dividends
    earnings distributed to stock-holders
  29. earnings per share
    the amount of net income after federal income tax belonging to a single share of stock
  30. employee earnings record
    a business form used to record details affecting payments made to an employee
  31. estimated salvage value
    the amount an owner expects to receive when a plant asset is removed from use
  32. federal unemployment tax
    a federal tax used for state and federal administrative expenses of the unemployment progam
  33. financial ratio
    a comparison between two items of financial information
  34. gross profit on sales
    the revenue remaining after cost of merchandise sold has been deducted
  35. list price
    the retail price listed in a catalog or on an internet site
  36. long-term liabilities
    liabilities owed for more than a year
  37. lookback period
    the 12-month period that ends on June 30th of the prior year
  38. markup
    the amount added to the cost of merchandise to establish the selling price
  39. medicare tax
    a federal tax paid for hospital insurance
  40. merchandise
    goods that a merchandising business purchases to sell
  41. merchandise inventory
    the amount of goods on hand for sale to customers
  42. merchandising business
    a business that purchases and sells goods
  43. net pay
    the total earnings paid to an employee after payroll taxes and other deductions
  44. net sales
    total sales less sales discount and sales returns and allowances
  45. pay period
    the period covered by a salary payment
  46. payroll
    the total amount earned by all employees for a pay period
  47. payroll register
    a business form used to record payroll information
  48. payroll taxes
    taxes based on the payroll of a business
  49. plants assets
    assets that will be used for a number of years in the operation of a business
  50. point-of-sale terminal
    a computer used to collect, store, and report all the information of sales transaction
  51. price-earnings ratio
    the relationship between the market value per share and earnings per share of a stock
  52. purchase invoice
    an invoice used as a source document for recording a purchase on account transaction
  53. purchase on account
    a transaction in which the merchandise purchased is to be paid for later
  54. purchases allowance
    credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable
  55. purchases journal
    a special journal used to record only purchases of merchandise on account
  56. purchases return
    credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable
  57. retail merchandising business
    a merchandising business that sells to those who use or consume the goods
  58. retained earnings
    an amount earned by a corporation and not yet disturbed to stockholders
  59. salary
    the money paid for employee services
  60. sales allowance
    credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable
  61. sales return
    credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable
  62. schedule of accounts payable
    a listing of vendor accounts, account balances, and total amount due all vendors
  63. schedule of accounts receivable
    a listing of customer accounts, account balances, and total amount due from all customers
  64. share of stock
    each unit of ownership in a corporation
  65. social security tax
    a federal tax paid for old-age, survivors, and disability insurance
  66. special amount column
    a journal amount column headed with an account title
  67. special journal
    a journal used to record only one kind of transaction
  68. state unemployment tax
    a state tax used to pay benefits to unemployed workers
  69. statement of stockholder's equity
    a financial statement that shows changes in a corporation's ownership for a fiscal period
  70. stockholder
    an owner of one or more shares of a corporation
  71. straight-line method of depreciation
    charging an equal amount of depreciation expense for a plant asset in each year of useful life
  72. subsidiary ledger
    a ledger that is summarized in a single general ledger account
  73. supporting schedule
    a report prepared to give details about an item on a principle financial statement
  74. tax base
    the maximum amount of earnings on which a tax is calculated
  75. terms of sale
    an agreement between a buyer and a seller about payment for merchandise
  76. total earnings
    the total pay due for a pay period before deductions
  77. trade discount
    a reduction in the list price granted to customers
  78. uncollectible accounts
    accounts receivable that cannot be collected
  79. vendor
    a business from which merchandise is purchased or supplies or other assets are bought
  80. wholesale merchandising business
    a business that buys and resells merchandise to retail merchandising businesses
  81. withholding allowances
    a deduction from total earnings for each person legally supported by a taxpayer, including the employee

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