trial balance
a proof of the equality of debits and credits in a general ledger
checking account
a bank account from which payments can be ordered by a depositor
endorsement
a signature or stamp on the back of a check transferring ownership
blank endorsement
an endorsement consisting only of the endorser's signature
special endorsement
an endorsement indicating a new owner of a check
restrictive endorsement
an endorsement restricting further transfer of a check's ownership
postdated check
a check with a future date on it
bank statement
a report of deposits, withdrawals, and bank balances sent to a depositor by a bank
dishonored check
a check that a bank refuses to pay
electronic funds transfer
a computerized cash payments system that uses electronic impulses to transfer funds
debit card
a bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder
petty cash
an amount of cash kept on hand for making small payments
petty cash slip
a form showing proof of a petty cash payment
journal
a form of recording transactions in chronological order
journalizing
recording transactions in a journal
special amount column
a journal amount column headed with an account title
general amount column
a journal amount column that is not headed with an account title
entry
information for each transaction recorded in a a journal
double-entry accounting
the recording of debit and credit parts of a transaction
source document
a business paper from which information is obtained for a journal entry
check
a business form ordering a bank to pay cash from a bank account
invoice
a form describing the goods or services sold, the quantity, and the price
sales invoice
an invoice used as a source document for recording a sale on account
receipt
a business form giving written acknowledgement for cash received
memorandum
a form on which a brief message is written describing a transaction
proving cash
determining that the amount of cash agrees with the accounting records
Customer
A person or business to whom merchandise or services are sold
Sales Tax
A tax on a sale of merchandise or services
Sales Journal
A special journal used to record only sales of merchandise
Cash Sale
A sale in which cash is received for the total amount of the sale at the time of the transaction
Terminal Summary
The report that summarized the cash credit card sales of a POS terminal
Batch Report
A report of credit card sales produces by a POS terminal
Batching Out
The process of prepared aa batch report of credit card sales from a POS terminal
Cash Receipts Journal
A special journal used to record only cash receipt transactions
Sales Discount
A cash discount on sales taken by a customer
Sales Return
Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable
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
Credit Memorandum
A form prepared by the vendor showing the amount deducted for returns and allownaces
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
Point-of-Sale(POS) Terminal
A computer used to collect, store, and report all the information of a sales transaction
Asset
Anything of value that is OWNED
Liability
An amount OWED by a business
Capital
Worth of a business
Proprietorship
Business owned by one person
Accounting
Planning, Recording, Analyzing, and Interpreting financial information
Transaction
A business activity that changes assets, liabilities, or owner's equity
Revenue
An increase in capital resulting from the operation of a business
Expense
An decrease in capital resulting from the operation of a business
Withdrawal
Assets taken out of a business for the owner's personal use
T-account
an accounting device used to analyze transactions
Journal
a form that records transactions chronologically
Source Document
proof for a journal entry
General Journal
a journal where all kinds of transactions can be recorded
Ledger
a group of accounts
General Ledger
contains all the necessary accounts to prepare financial statements
Posting
transferring information from the journal to the ledger
Endorsement
transferring ownership of check by signing or stamping the back of the check
Dishonored Check
a check the bank refuses to pay
Reconciling a Bank Statement
verifying that the information on a bank statement and a checkbook are in agreement
Fiscal Period
financial time period
Adjusting Entries
entries that update accounts
Closing Entries
entries that set temporary accounts and zero and update capital
Work Sheet
nonpermanent document that assists in the preparation of financial statements
Income Statement
financial statement which reports net income or loss
Balance Sheet
financial statement which shows what a company owns, owes, and is worth
