wgu D102 financial accounting all
terms – Questions and Answers
account - -an accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance
- accounts receivable - -a current asset representing money due for
services performed or merchandise sold on credit
- accrual accounting - -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 - -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 - -reflects the wear and tear, or depreciation, of
items since they were originally purchased
- additional paid-in capital - -capital invested by stockholders that exceeds
the par value of the issued shares
- adjusting entries - -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 - -the recording of estimated losses due to uncollectible
accounts as expenses during the period in which the sales occurred
- allowance for bad debts - -a contra account, deducted from accounts
receivable, that shows the estimated losses from uncollectible accounts
- amortization - -the process of cost allocation that assigns the original cost
of an intangible asset to the periods benefited
- articulatoin - -the interrelationship among the financial statements
- assets - -economic resources that are owned or controlled by a company
- audit committee - -members of a company's board of directors who are
responsible for dealing with the external and internal auditors
, - average costing - -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 - -an account that represents the portion of the current
period's credit sales that are estimated to be uncollectible
- bad debts - -an uncollecible account receivable
- balance sheet - -a listing of an organization's assets and of its liabilities at
a certain time
- bank reconciliation - -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 - -individuals elected by the stockholders to govern a
corporation
- bonus - -additional compensation beyond the regular compensation that is
paid to employees if certain objectives are achieved
- book value - -for a long-term operating asset, the asset's original cost less
any accumulated depreciation
- business documents - -records of transactions used as the basis for
recording accounting entries; include invoices, check stubs, receipts, and
similar business papers
- calender year - -an entity's reporting year, from January 1 to December 31
- cash - -coins, currency, money orders, checks, and funds on deposit with
financial institutions
- cash basis accounting - -a system of accounting in which transactions are
recorded and revenues and expenses are recognized only when cash is
received or paid
- cash collection - -the recovery of cash from a business or individual with
which you have previously entered into a transaction
- cash dividends - -a cash distribution of earnings to stockholders
- cash equivalents - -short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds
terms – Questions and Answers
account - -an accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance
- accounts receivable - -a current asset representing money due for
services performed or merchandise sold on credit
- accrual accounting - -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 - -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 - -reflects the wear and tear, or depreciation, of
items since they were originally purchased
- additional paid-in capital - -capital invested by stockholders that exceeds
the par value of the issued shares
- adjusting entries - -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 - -the recording of estimated losses due to uncollectible
accounts as expenses during the period in which the sales occurred
- allowance for bad debts - -a contra account, deducted from accounts
receivable, that shows the estimated losses from uncollectible accounts
- amortization - -the process of cost allocation that assigns the original cost
of an intangible asset to the periods benefited
- articulatoin - -the interrelationship among the financial statements
- assets - -economic resources that are owned or controlled by a company
- audit committee - -members of a company's board of directors who are
responsible for dealing with the external and internal auditors
, - average costing - -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 - -an account that represents the portion of the current
period's credit sales that are estimated to be uncollectible
- bad debts - -an uncollecible account receivable
- balance sheet - -a listing of an organization's assets and of its liabilities at
a certain time
- bank reconciliation - -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 - -individuals elected by the stockholders to govern a
corporation
- bonus - -additional compensation beyond the regular compensation that is
paid to employees if certain objectives are achieved
- book value - -for a long-term operating asset, the asset's original cost less
any accumulated depreciation
- business documents - -records of transactions used as the basis for
recording accounting entries; include invoices, check stubs, receipts, and
similar business papers
- calender year - -an entity's reporting year, from January 1 to December 31
- cash - -coins, currency, money orders, checks, and funds on deposit with
financial institutions
- cash basis accounting - -a system of accounting in which transactions are
recorded and revenues and expenses are recognized only when cash is
received or paid
- cash collection - -the recovery of cash from a business or individual with
which you have previously entered into a transaction
- cash dividends - -a cash distribution of earnings to stockholders
- cash equivalents - -short-term, highly liquid investments such as Treasury
bills, commercial paper, and money market funds
