Term
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Definition
| a device for recording the changes (increases or decreases) in the fundamental accounting elements |
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Term
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Definition
| one who is concerned with the design of the system of records, the preperation of reports based upont he recorded data, and the interpretation of the reports |
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Definition
| the difference between the total debits and total credits in an account |
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Term
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Definition
a language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data
ARCSRI |
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Term
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Definition
| assets = liabilities + owner's equity |
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Term
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Definition
| an unwritten promise to pay creditors for property, such as merchandise, supplies or equipment, purchased on credit, or for services rendered |
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Term
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Definition
| an unwritten promise by a customer to pay, at a later date, for goods sold or services rendered |
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Term
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Definition
| recording in each fiscal period applicable expenses, whether paid or not, and income earned, whether collected or not |
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Definition
| an expense incurred in operating a business during an accounting period, but not yet paid |
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Term
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Definition
| income actually earned during an accounting period but which will not be received until a future period |
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Term
allowance for doubtful accounts
(allowance for bad debts) |
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Definition
| a contra account utilized to accumulate totals against accounts receivable |
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Term
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Definition
| determining the fundamental significance of business transactions so that financial info may be properly processed |
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Term
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Definition
| property of monetary value owned by a business |
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Term
bad debts expense/
uncollectible accounts expense/
loss from uncollectible accounts |
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Definition
| accounts receivable that are uncollectible |
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Term
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Definition
statement of financial position / statement of financial condition
a formal financial statement illustrating
assets, liabilities, and owner's equity of a business as of a specific date |
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Term
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Definition
information processor
one who is involved in the process of recording financial info in a prescribed manner |
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Term
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Definition
| the recording of financial information in a prescribed manner |
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Term
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Definition
| a formal written statement, which may be based upon adjusted historical data, of management's plans for the future expressed in financial terms |
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Term
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Definition
source document
the first record of a business transaction, such as check stubs, receipts, sales invoices, puchase invoices, cash register tapes, etc. |
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Term
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Definition
| a twelve month period beginning Jan 1 and concluding December 31 |
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Term
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Definition
net worth / owner's equity / proprietorship
the amount by which the total assets exceed the total liabilities of a business;
an owner's financial interest ina business
assets = liability - O.E.
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Term
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Definition
| coins, currency (paper money), checks, credit card receipts and money orders received from others, as well as money deposited in bank |
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Term
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Definition
| discounts from quoted prices as an inducement for prompt payment of invoices |
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Term
cash disbursements
aka... |
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Definition
cash payments
money and money substitutes paid |
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Term
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Definition
| ma book of original entry in which only cash disbursements are recorded |
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Term
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Definition
| a book of original entry in which only cash receipts are recorded |
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Term
certified public accountant
aka... |
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Definition
C.P.A.
an individual possessing a college edu, having practical exp in accouting and who has passed a comprehensive state exam in order to be certified to practice public accounting in that state |
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Term
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Definition
| a list of all the account titles and the account numbers assigned to them |
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Term
check stub
which is also a form of... |
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Definition
a type of source document
a form on which information is recorded by the drawer of a check concerning the check drawn
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Term
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Definition
| to record in order of time |
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Term
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Definition
| the sorting of the many business transactions in an orderly and systematic manner |
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Term
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Definition
| a book of original entry which combines into one journal the features of the 2 column general journal and a special journal |
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Term
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Definition
| an account designed to accumulate totals to offset a related account |
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Term
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Definition
| the abbreviation for credit |
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Term
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Definition
| right side of standard account |
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Term
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Definition
| a condition that occurs when the total of the credits in an account is larger that the total of the debits in that account |
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Term
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Definition
| a source document that grants credit to a buyer for purchase return or purchase allowance |
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Term
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Definition
| a business or individual to whom a debt is owed |
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Term
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Definition
the process of entering the journal page number in the ledger
and the ledger acct number in the journal |
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Term
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Definition
| cash or other assets that will be converted into cash or consumed within one year |
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Term
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Definition
recording
the committing of a business transaction and the events surrounding such into writing |
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Term
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Definition
| the left side of a standard account |
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Term
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Definition
| a condition which occurs when the total of the debits in an acct is larger than the total of the credits in that account |
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Term
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Definition
| items in the bank duducts from the account balance |
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Term
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Definition
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Term
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Definition
| a specific number of days during which a discount is available if the account is paid |
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Term
double entry accounting
aka... |
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Definition
double entry bookkeeping
the process of recording equal debits and credits for a single business transaction |
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Term
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Definition
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Term
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Definition
owner withdrawls
a separate owner's equity account in which withdrawals of cash or other assets by the owner for personal use are recorded |
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Term
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Definition
| a period of time covered by an income statement |
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Term
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Definition
long term assets
property of a relatively permanent nature used in the operation of a business and not intended for resale |
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Term
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Definition
long term libilities
liabilities that are not due and payable within one year |
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Term
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Definition
pencil footing
a total, written in small pencil figures, under the last entry in a column of an account |
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Term
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Definition
| a book of original entry in which business transactions are recorded in chronological order |
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Term
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Definition
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Term
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Definition
gross profit
gross profit = net sales - cost of goods sold |
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Term
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Definition
a condition in which the total of the debits and the total of the credit are equal in an account
debits = credits |
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Term
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Definition
revenue
an inflow of assets as a reult of selling aproduct or providing a service |
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Term
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Definition
operating statement / profit and loss statement / statement of operation
a formal financial statement which presents the
income, expenses, and resulting net profit or net less for a given period |
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Term
information processor
aka... |
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Definition
bookkeeper
one who is involved in the process of recording financial info in a prescribed manner |
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Term
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Definition
those assets that cannot be touhed or grasped
e.g. patents, copyrights, goodwill |
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Term
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Definition
| money paid for the use of money |
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Term
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Definition
explaining the significant events or developments that occur, usually taking the form of the analysis and comparisons
ARCSRI |
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Term
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Definition
merchandise
good purchased for resale at a profit |
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Term
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Definition
| a source document showing quantity, description, prices of items, total amount of purhcase and the terms of payment |
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Term
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Definition
| any book of original entry |
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Term
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Definition
| the process of recording business transactions in a journal |
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Term
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Definition
| a book of accounts in which data from transactions recorded in journals are posted and thereby summarized |
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Term
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Definition
| any debts that a business owes |
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Term
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Definition
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Term
long term liabilities
aka... |
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Definition
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Term
loss from uncollectable accounts
aka... |
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Definition
| bad debts expense / uncollectible accounts expense |
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Term
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Definition
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Term
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Definition
a long term liability;
a written promise that pledges real property as security for payment of a debt |
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Term
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Definition
net profit
net profit = gross profit - expenses
(when gross profit is larger) |
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Term
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Definition
net loss = gross profit - expenses
(expenses are larger) |
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Term
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Definition
net purchases = purchases - PRA - purchase discounts
PRA (purchases returns and allowances) |
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Term
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Definition
net sales = sales - SRA - sales discounts
SRA (sales returns and allowances) |
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Term
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Definition
| capital / proprietorship / owner's equity |
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Term
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Definition
| a written promise to pay a creditor a certain amt in the future |
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Term
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Definition
| a written promise of a customer to pay the business a sum of money at a future date |
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Term
operating statement
aka... |
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Definition
| profit and loss statement / statement of operations / income statement |
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Term
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Definition
| expensesincurred that are not the direct result of regular trading activities of a business |
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Term
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Definition
| income received that is not the direct result of regular trading activities of a business |
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Term
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Definition
| net worth / capital / proprietorship |
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Term
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Definition
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Term
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Definition
| a fund of currency and coin established for the payment of small amounts of money |
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Term
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Definition
| the transferral of data from the journal to the ledger |
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Term
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Definition
| itmes which are considered to be assets when acquired, but which will become expenses when consumed or expired |
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Term
profit and loss statement
aka... |
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Definition
| statement of operations / operating statement / income statement |
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Term
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Definition
| owner's equity / net worth / capital |
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Term
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Definition
| a process which examines each page of a journal, confirming that the debit entries equal the credit entries on each page |
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Term
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Definition
a source document prepared by the seller listing the
items shipped,
their cost
and the method of shipment (from buyer's point of view) |
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Term
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Definition
| a written order by a buyer for the merchandise or other protery specified in the purchase requisition |
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Term
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Definition
| a form used to request the responsible person/dept to purchase merchandise or other property |
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Term
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Definition
| a temporary owner's equity acct used to record the buying of merchandise for resale |
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Term
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Definition
a temporary owner's equity contra account used to record discounts taken on inventory purchases;
the amount of any discounts grants by suppliers to encourage prompt payment of their invoices |
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Term
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Definition
| a book fo roiginal entry used to record puchases of merchandise on credit only |
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Term
| purchases returns and allowances |
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Definition
| a temporary owner's equity contra account utilized to record the return of merchandise to the manufacturer or supplier as the result of material, defects in workmanship, and/or inferior product quality |
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Term
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Definition
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Term
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Definition
data entry
committing of a business transaction and the events surrounding such into writing |
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Term
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Definition
final processing
the process of communicating the results achieved during the accounting period to others |
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Term
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Definition
| a tax imposed on tangible personal property sold at retail |
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Term
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Definition
| a temporary owner's equity acct used to record the earning of revenue |
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Term
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Definition
| a temporary owner's equity contra account used to record discounts given to customers as an incentive fo prompt payment |
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Term
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Definition
| a source document prepared by the seller that lists the items shipping, their cose, and the method of shipment (from the seller's point of view) |
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Term
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Definition
| a booke of original entry used for the recording of sales merchandis on credit only |
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Term
| sales returns and allowances |
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Definition
| a temporary owner's equity contra account used to record credit given to a customer for shrtages or damged goods |
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Term
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Definition
| a special journal designed to accumulate data about only one kind of business transaction |
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Term
statement of financial condition
aka... |
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Definition
| statement of financial position |
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Term
statement of operations
aka... |
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Definition
operating statement
profit and loss statement
income statement |
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Term
statement of owner's equity
aka |
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Definition
statement of net worth
a formal financial statement which summarized all of the changes in owner's equity during a speific time period |
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Term
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Definition
bringing account data together in a way that will further enhace its usefulness, usually by means or reports and statements
ARCSRI |
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Term
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Definition
| those assets that can by appriased by value or seen or touched |
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Term
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Definition
| any activity of a business enterprise that involves the exchange of values |
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Term
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Definition
| the affect of business activities on the accounting elements |
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Term
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Definition
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Term
uncollectible accounts expense
aka...loss |
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Definition
| loss from uncollectible accounts / bad debts expense |
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