Planning, recording, analyzing, and interpreting financial information.

Journal entries recorded to update general ledger accounts at the end of a fiscal period.

Journal entries used to prepare temporary accounts for a new fiscal period.

Anything of value that is owned.

A financial statement showing revenue and expenses for a fiscal period.

The difference between total revenue and total expenses when total expenses are greater.

The difference between total revenue and total expenses when total revenue is greater.

A decrease in owner’s equity resulting from the operation of a business.

An amount owed by a business.

An increase in owner’s equity resulting from the operation of a business.

Accounts used to accumulate information until it is transferred to the owner’s capital account.

An accounting device used to analyze transactions.

The procedure for transferring information from a journal entry to a ledger account.

Accounts used to accumulate information from one fiscal period to the next.

The formula for calculating net income is total revenue minus total expenses.

Temporary accounts are used to accumulate information until it is transferred to the owner’s capital account.

The accounting equation is most often stated as Assets + Liabilities = Owner’s Equity.

When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.

Each transaction changes the balances in at least two accounts.

Accounts Payable accounts are increased with a debit.

Transactions are recorded in a journal in chronological order.

Double lines are ruled across a journal’s amount columns to indicate that the totals have been verified as correct.

The column total of the General Credit column is posted.

A group of accounts is called a ledger.

Separate amounts in a journal’s special amount columns are posted individually.

Two financial statements are prepared from the information on the work sheet.

The amount of the supplies used during a fiscal period is an expense.

The owner’s capital account reported on a balance sheet is calculated as capital account balance less drawing account balance plus net income.

Temporary accounts include assets, expenses, and the owner’s drawing account.

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

The normal balance side of a liability account is the

The normal balance side of any revenue account is the

When cash is paid for supplies

When cash is received from sales, the amount is recorded in the

The first digit in the account number 520 means that the account is in the

If both amounts on a journal line are recorded in special amount columns,

Cash Short and Over is classified as a(n)

An endorsement on the back of a check consisting of the words “Pay to the order of” and a new check owner’s name is a

The amount of net income calculated on an income statement is correct if

An income statement reports a business’s financial

The last step in the accounting cycle is to

Temporary accounts begin each new fiscal period with a

After closing entries are posted, the balance in the owner’s drawing account should be

The accounts that appear on the post-closing trial balance are