accounts receivable
total amount of money to be recieved in the future for goods or services sold on credit
liablities
debts of a business
deposit slip
bank form on which the currency (bills and coins) and checks to be deposited are listed
post-closing trial balance
prepared to prove that debits in the ledger accounts are equal to the credits after the closing entries have been posted
compound entry
journal entry with two or more debits or two or more credits
permanent accounts n their balances
are listed on the post-closing trial balance
Income Summary Account
is a general ledger account used to accumulate and summarize the revenue and exenses for a period
temporary capital accounts
accounts that start an accounting period with zero balances are called
correcting entry
errors discovered after posting has taken place require
trial balance
periodic report prepared by a business to test the equality of total debits and total credits int he ledger us called a
posting
transferring data from the journal to the ledger
slide error
writing 190 as 19 or 1900
transposition error
u wrote 27 instead of 72
journalizing
recording a business transaction
source document
any type of business paper that verifies that a transaction occured
calendar year
begins Jan 1st and ends Dec 31st
accounting cycle
various activities a business completes to organize its accounting records in an orderly fashion
general journal
all purpose journal used for recording business transactions
corporation
business organization that must get permission from the state to operate
manufactoring business
business that produces items to sell to individuals and other businesses is known as a
business entity account assumption
business owner must keep the financial records for the business separate from personal records
partnership
business that two or more agree to own together
going concern accounting assumption
the accountant prepares reports as thought the business will operate indifinitely
