The products or goods a business sells

A business that purchases and resells goods

The person or business from which goods or services are purchased

The price paid by a business for goods it purchases to resell

A transaction in which the purchased merchandise is to be paid for at a later time

A source document used to record a purchase on account

A journal used to record only one type of transaction

A special journal that records only purchases on account

A journal amount column not headed with an account title

A journal amount column headed with an account title and used for a specific account

An account that reduces a related account on a financial statement

A reduction in the list price

A credit given to the business to refund the purchase price of returned merchandise

A deduction that a vendor allows on the invoice amount to encourage prompt payment

A special journal used to record all payments of cashMerchandise Sales Terms

A person or business to which merchandise or services are sold

A special journal used only to record sales of merchandise on account

A sale for which cash will be received at a later date

A tax on a sale of merchandise or service.

Selling merchandise to retailers

Selling merchandise to the final use

A sale in which cash is received for the total amount of the sale at the time of the transaction

A cash discount on sales taken by a customer

A special journal used only to record cash receipt transactions

A sale in which a credit card is used for the total amount of the sale at the time of the transaction

A computer used to collect, store and report all the information about a sales transaction

A report of credit card sales produced by a point-of sale terminal

The process of preparing a batch report of credit card sales from a point-of sale terminal

The report that summarizes the cash and credit card sales of a point-of-sale terminal

Credit allowed a customer to return the sales price of returned merchandise

Credit allowed a customer for part of the sales price of merchandise that is not returned

Source document listing the details of a sales return or allowance

A group of accounts

A ledger that contains all the accounts needed to prepare financial statements

The number assigned to the account

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

Writing an account title and number on the heading of an account

Transferring information from a journal entry to a ledger account

An entry made to correct an error that is discovered after posting is completed

Determining that the amount of available cash agrees with the balance of the cash account

A business paper that contains the information needed to record the journal entry

A business form that orders a bank to pay cash from a bank account. It contains the date, amount, the name of the payee to whom the check was written and what the check purchased. The check stub is the record of information on a check and shows the balance of the account.

Contains the date of the transaction, quantity, description and cost of each item and payment terms.

An invoice that is used to record a sale on account. Can also use the terms Sales Slip and Sales Ticket. Also, the terms Sales Slip and Sales Ticket for a merchandising business.)

Shows the date payment was made, the name of the person or business that paid and the amount paid

A form that contains a brief message describing a transaction. Often used when there is no other type of source document

Recording the debit and credit part of a transaction. Every transaction affects at least two accounts. Debits must equal credits

A form that is used to record transactions in chronological order

The process of recording the transactions in a journal

Consists of four parts: date, debit, credit and source document and is recorded in the journal for each transaction

A journal with two amount columns that can contain a variety of different transactions

The planning, recording, analyzing, and interpreting of financial information

Anything of value that is owned

An amount owed by a business

The amount remaining after the value of all liabilities is subtracted from the value of all assets

A business activity that changes assets, liabilities, or owner's equity

Shows the relationship among assets, liabilities, and owner's equity. It is most often stated as: Assets = Liabilities + Owner's Equity

A record summarizing all the information pertaining to a single item in the accounting equation

The name given to an account

The amount in an account

The account used to summarize the owner's equity in a business

An increase in owner's equity resulting from the operation of a business

A sale for which cash will be received at a later date

A decrease in the owner's equity resulting from the operation of a business

Assets taken out of a business for the owner's personal use

An accounting device used to analyze transactions

An amount recorded on the left side of a T-account

An amount recorded on the right side of a T-account

The side of the account that is increased

A list of accounts used by a business

serve the public interest, honor public trust, and demonstrate commitment to the profession

observe technical and ethical standards, improve competence, and perform to the best of your ability

perform professional responsibilities with the highest sense of integrity

be independent in fact and appearance in providing auditing or other attestation services

exercise sensitive and professional moral judgments

follow Code of Professional Conduct in determining scope and nature of services

The study of right and wrong and how people choose what is morally good and bad.

Refers to how a company uses a code of conduct, which is designed to encourage ideal behavior when making decisions.

Learning skills desired for the marketplace

Personal qualities such as responsibility, integrity, and character

Skills directly related to employment

Generally Accepted Accounting Principles, The standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements

American Institute of Certified Public Accountants; the national professional organization of CPAs.

Financial Accounting Standards Board; develops GAAP for public companies.

Securities and Exchange Commission; primarily responsible for enforcing federal securities laws and regulating the securities industry.

A negotiable financial instrument representing financial value. Examples are banknotes, bonds, common stocks, options, and futures.

Also called Truth in Securities Act; established after the stock market crash of 1929 during the Great Depression. It requires that any offer of sale of securities be registered.

A law governing the secondary trading of securities in the US; established the SEC (Securities and Exchange Commission).

Governmental Accounting Standards Board; develops GAAP for state and local governments.

Capable of making a difference in decision-making of the user.

Information must be verifiable, a faithful representation, and reasonably free from error and bias.

1. Helps detect and explain similarities and differences between companies.

Using the same method of accounting from one period to another to help decision makers.

Big enough to make a difference in the user's decision-making process.

Given two equally likely alternatives to estimate, accountants will choose the less optimistic alternative.

States that an item should be recognized (recorded) in the financial statements when it can be defined, measured, relevant and reliable.

States that every transaction is measured by the stated unit of measurement, such as the dollar.

All of the business transactions should be separate from those of the owners.

Financial statements are prepared under the assumption that the company will remain in business indefinitely unless significant evidence otherwise.

Assumes a stable currency is going to be the unit of record.

The entity's activities are separated into periods of time such as months, quarters or years.

Assets are recorded at historical cost, not fair market value.

All information pertaining to operations and financial position of the entity must be reported within the period of time in question.

Revenue is earned and recognized upon product delivery or service completion, no matter when cash is received.

Costs of doing business are recorded in the same period as the revenue they help generate, regardless of when money is actually paid.

Fairness; uninfluenced by emotion or personal opinion; does not allow bias or conflicts of interest.

International Financial Reporting Standards

International Accounting Standards Board

Accounting Principles Board

A file containing one or more spreadsheets.

(Worksheet) Arrangement of cells in columns and rows used to organize, analyze, calculate and report information—usually numeric data.

Individual locations on a spreadsheet at the intersection of a column and row.

The Column letter and the row number identifying where a cell is located. Ex./ B16

Refers to a group of cells, starting with the uppermost left hand corner and ending with the lower most right hand corner. A colon : is inserted between the cell addresses. Ex./ A4:A16 or B3:E11

Classification is used for cells that contain text or for numbers that will not be used in calculations

A classification indicates that the data has the potential to be used in calculations

Instructions to the program to perform a calculation; begin with equal (=) sign.

A shortcut for a formula. Ex./ SUM, AVERAGE

Cell value changes as the formula/function is copied.

Cell value remains static when copied to other locations.

A combination of an absolute and a relative cell reference in a formula.

Used to fill in a column or row with consecutive data.

The accounting assumption that a business exists independently of its owner's personal holdings. The accounting records and reports are maintained separately and contain financial information related only to the business.

Money supplied by investors, banks, or owners of a business

The legal permission, granted by a state, that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.

A business organization recognized by law to have a life of its own.

A person who transforms ideas for products or services into real-world businesses.

A business that operates to earn a profit for its owners.

A system in which individuals are free to produce the goods and services they choose.

The accounting assumption that a business is expected to survive and operate indefinitely.

The result when a business spends more money than it earns.

A business that buys raw materials, transforms them into finished products by using labor and machinery, and sells the finished products to individuals or other businesses.

A business that buys finished goods and resells them to individuals or other businesses.

An organization that operated for purposes other than making a profit.

A business owned by two or more persons, called partners, who agree to operate the business as co-owners.

The amount of money earned above the amount of expense incurred to keep the business operating.

A business that provides a needed service for a fee.

A business owned by one person.

A person who handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports

An entry-level job that can vary from specializing in one part of the system (i.e. Purchasing or Accounts Payable) to doing a wide range of tasks

Activities performed in an accounting period that help the business keep its records in an orderly fashion

The period of time covered by an accounting report

A system designed to collect, document, and report on business transactions

The review of a company's accounting systems and financial statements to confirm that it follows generally accepted accounting principles

Accounting period that begins on January 1 and ends on December 31

A licensed professional who has met certain education and experience requirements and passed a national test

A type of accounting system in which information is recorded by entering it into a computer (aka Automated Accounting System)

Focuses on reporting information to external users—those not directly involved in the day-to-day operations of the business. (i.e. banks, investors, governmental taxing agencies, competitors)

Documents that present summarized information about the financial status of a business. (i.e. Balance Sheets, Income Statements, Cash Flow Statements)

An accounting period of 12 consecutive months which CAN match the calendar year or not. Ex/ The State of North Carolina's fiscal year begins on July 1 and ends the following June 30

Generally Accepted Accounting Principles. All accountants follow the same accounting framework or set of rules to prepare financial reports.

Focuses on reporting information to management and internal users of information who are involved in making day-to-day operating decisions like purchasing, hiring, production, sales and budgets.

A type of accounting system in which information is processed largely by hand recording of transactions.