BAF3M-Final Exam

Definition: the process of gathering and preparing financial information about a business or other organization in a form that provides accurate and useful records and enables decisions to be made.

• credit

• accounting

• auditing

• marketing

Definition: A business paper, such as an invoice, that is the original record of a transaction and that provides the information needed when accounting for the transaction.

• account

• general journal

• chart of accounts

• source document

Definition: anyone who owes money to the business.

• credit

• liability

• expenses

• debtor

A financial event that changes the values in certain accounts and therefore affects the financial position of the business.

• business transaction

• source document

• account

• owner's equity

The general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received.

• consistency principle

• principle of conservatism

• business entity concept

• revenue recognition principle

A business form, prepared whenever goods or services are sold on account, showing a description of goods or services, the price, and other information.

• cash sales slip

• purchase invoice

• ledger

• sales invoice

The most commonly used type of account, in which there are three money columns, one for the debit amounts, one for the credit amounts, and one for the amount of the balance.

• Chart Of Accounts

• Income Summary Account

• Accounting

• Balance Column Account

The period of time over which earnings are measured.

• accounting period

• fiscal period

• monthly period

• fiscal year

The name given to a supplier's sales invoice in the office of the purchaser.

• sales invoice

• cheque copy

• purchase invoice

• cash sales slip

Harmonized sales tax which many provinces have adopted which merges the Federal GST and the provincial tax rates

• HST

• debit

• Posting

• GST