ledger that contains all accounts needed to prepare financial statements
general ledger
number assigned to an account
account number
procedure for arranging accounts in general ledger, assigning account numbers, and keeping records current
file maintenance
writing an account title and number on the heading of an account
opening an account
transferring information from a journal entry to ledger account
posting
incorrect journal entry should be corrected with an additional journal entry called _____
correcting entry
Goods that a business purchases to sell
Merchandise
A business that purchases and sells goods
Merchandising business
A merchandising business that sells to those who use or consume the goods
Retail merchandising business
A business that buys and resells merchandise to retail merchandising businesses
Wholesale merchandising business
A journal used to record only one kind of transaction
Special journal
An organization with the rights of a person and which many persons may own
corporation
Each unit of ownership in a corporation
Share of Stock
Total shares of ownership in a corporation
Capital Stock
An owner of one or more shares of a corporation
Stockholder
The price a business pays for goods it purchases to sell
Cost of Merchandise
Return on Investment (ROI)
The ratio of the money earned on an investment relative to the amount of the investment.
Real Property
Land and anything attached to the land.
Personal Property
All property not classified as real property.
Assessed Value
The value of an asset determined by tax authorities for the purpose of calculating taxes.
Plant Asset Record
An accounting form on which a business records information about each plant asset.
Gain
An increase in equity resulting from activity other than selling goods or services.
Gain on Plant Asset
An increase in equity that results when a plant asset is sold for more than book value.
Loss
A decrease in equity resulting from activity other than selling goods or services.
Loss on Plant Asset
The decrease in equity that results when a plant asset is sold for less than book value.
Intangible Asset
An asset that does not have physical substance.
Amortization
The spreading of the cost of an intangible asset over its useful life.
