WGU D102 FINANCIAL ACCOUNTING
ALL TERMS
Account - ANSWER an accounting record in which the results of transactions
are accumulated; shows increases, decreases, and a balance
Accounts receivable - ANSWER a current asset representing money due for
services performed or merchandise sold on credit
accrual accounting - ANSWER the process of recording expenses and
revenues when incurred and earned, regardless of when cash is received, and of
adjusting original transaction data into refined measures of a firm's past economic
performance and current economic condition
accrual basis accounting - ANSWER a system of accounting in which
revenues and expenses are recorded as they are earned and incurred, not necessarily
when cash is received or paid
accumulated depreciation - ANSWER reflects the wear and tear, or
depreciation, of items since they were originally purchased
additional paid-in capital - ANSWER capital invested by stockholders that
exceeds the par value of the issued shares
adjusting entries - ANSWER entries required at the end of each accounting
period to recognize, on an accrual basis, revenues and expenses for the period and to
report proper amounts for asset, liability, and owners' equity accounts
,allowance method - ANSWER the recording of estimated losses due to
uncollectible accounts as expenses during the period in which the sales occurred
allowance for bad debts - ANSWER a contra account, deducted from
accounts receivable, that shows the estimated losses from uncollectible accounts
amortization - ANSWER the process of cost allocation that assigns the
original cost of an intangible asset to the periods benefited
articulatoin - ANSWER the interrelationship among the financial statements
assets - ANSWER economic resources that are owned or controlled by a
company
audit committee - ANSWER members of a company's board of directors who
are responsible for dealing with the external and internal auditors
average costing - ANSWER an inventory cost flow assumptions whereby
cost of goods sold and the cost of ending inventory are determined by using an average
cost of all merchandise available for sale during the period
bad debt expense - ANSWER an account that represents the portion of the
current period's credit sales that are estimated to be uncollectible
bad debts - ANSWER an uncollecible account receivable
balance sheet - ANSWER a listing of an organization's assets and of its
liabilities at a certain time
, bank reconciliation - ANSWER the process of systematically comparing the
cash balance as reported by the bank with the cash balance on the company's books
and explaining any differences
board of directors - ANSWER individuals elected by the stockholders to
govern a corporation
bonus - ANSWER additional compensation beyond the regular compensation
that is paid to employees if certain objectives are achieved
book value - ANSWER for a long-term operating asset, the asset's original
cost less any accumulated depreciation
business documents - ANSWER records of transactions used as the basis
for recording accounting entries; include invoices, check stubs, receipts, and similar
business papers
calender year - ANSWER an entity's reporting year, from January 1 to
December 31
cash - ANSWER coins, currency, money orders, checks, and funds on
deposit with financial institutions
cash basis accounting - ANSWER a system of accounting in which
transactions are recorded and revenues and expenses are recognized only when cash
is received or paid
ALL TERMS
Account - ANSWER an accounting record in which the results of transactions
are accumulated; shows increases, decreases, and a balance
Accounts receivable - ANSWER a current asset representing money due for
services performed or merchandise sold on credit
accrual accounting - ANSWER the process of recording expenses and
revenues when incurred and earned, regardless of when cash is received, and of
adjusting original transaction data into refined measures of a firm's past economic
performance and current economic condition
accrual basis accounting - ANSWER a system of accounting in which
revenues and expenses are recorded as they are earned and incurred, not necessarily
when cash is received or paid
accumulated depreciation - ANSWER reflects the wear and tear, or
depreciation, of items since they were originally purchased
additional paid-in capital - ANSWER capital invested by stockholders that
exceeds the par value of the issued shares
adjusting entries - ANSWER entries required at the end of each accounting
period to recognize, on an accrual basis, revenues and expenses for the period and to
report proper amounts for asset, liability, and owners' equity accounts
,allowance method - ANSWER the recording of estimated losses due to
uncollectible accounts as expenses during the period in which the sales occurred
allowance for bad debts - ANSWER a contra account, deducted from
accounts receivable, that shows the estimated losses from uncollectible accounts
amortization - ANSWER the process of cost allocation that assigns the
original cost of an intangible asset to the periods benefited
articulatoin - ANSWER the interrelationship among the financial statements
assets - ANSWER economic resources that are owned or controlled by a
company
audit committee - ANSWER members of a company's board of directors who
are responsible for dealing with the external and internal auditors
average costing - ANSWER an inventory cost flow assumptions whereby
cost of goods sold and the cost of ending inventory are determined by using an average
cost of all merchandise available for sale during the period
bad debt expense - ANSWER an account that represents the portion of the
current period's credit sales that are estimated to be uncollectible
bad debts - ANSWER an uncollecible account receivable
balance sheet - ANSWER a listing of an organization's assets and of its
liabilities at a certain time
, bank reconciliation - ANSWER the process of systematically comparing the
cash balance as reported by the bank with the cash balance on the company's books
and explaining any differences
board of directors - ANSWER individuals elected by the stockholders to
govern a corporation
bonus - ANSWER additional compensation beyond the regular compensation
that is paid to employees if certain objectives are achieved
book value - ANSWER for a long-term operating asset, the asset's original
cost less any accumulated depreciation
business documents - ANSWER records of transactions used as the basis
for recording accounting entries; include invoices, check stubs, receipts, and similar
business papers
calender year - ANSWER an entity's reporting year, from January 1 to
December 31
cash - ANSWER coins, currency, money orders, checks, and funds on
deposit with financial institutions
cash basis accounting - ANSWER a system of accounting in which
transactions are recorded and revenues and expenses are recognized only when cash
is received or paid
