Mortuary Science Accounting Glossary
UPDATED ACTUAL Questions and
CORRECT Answers
Account - CORRECT ANSWER - a device for recording changes (increases or decreases)
in the fundamental accounting elements
Account Balance - CORRECT ANSWER - the difference between the total debits and the
total credits in an account
Accounting Cycle - CORRECT ANSWER - the process involved in journalizing, posting
to the ledger, taking a trial balance, preparing statements, making adjusting and closing entries,
and preparing a post-closing trial balance, which is repeated each fiscal period
Accounting Equation - CORRECT ANSWER - assets equal liabilities plus owner's equity
Account Payable - CORRECT ANSWER - an unwritten promise to pay creditors for
property such as merchandise, supplies, or equipment purchased on credit, or for services
received on credit
Account Receivable - CORRECT ANSWER - an unwritten promise by a customer to pay
at a later date for goods sold or services rendered
Accounts Receivable Turnover - CORRECT ANSWER - measures how many times per
year receivables are collected.
Accrual Accounting - CORRECT ANSWER - recording in each fiscal period applicable
expenses, whether paid or not, and income earned.
Accrued Expense - CORRECT ANSWER - an expense incurred in operating a business
during an accounting period but not yet paid
, Accrued Income - CORRECT ANSWER - income actually earned during an accounting
period but which will not be received until a future period
Acid Test Ratio/Quick Ratio - CORRECT ANSWER - quick assets divided by current
liabilities
Activity Analysis - CORRECT ANSWER - measures how efficiently a firm is utilizing its
assets
Adjusted Trial Balance - CORRECT ANSWER - a trial balance taken after adjusting
entries have been recorded
Adjusting Entries - CORRECT ANSWER - entries made at the conclusion of a fiscal
period to bring accounts up to date
Allowance for Doubtful Accounts (Allowance for Bad Debts) - CORRECT ANSWER -a
contra account utilized to accumulate totals against accounts receivable
Assets - CORRECT ANSWER - property of monetary value owned by a business
Bad Debts Expense/Uncollectible Accounts Expense/Loss from Uncollectible Accounts -
CORRECT ANSWER - accounts receivable that are uncollectible
Balance Sheet/Statement of Financial Position/Statement of Financial Condition - CORRECT
ANSWER - a formal financial statement illustrating the assets, liabilities, and owner's
equity of a business as of a specific date
Balance sheet common-size statements/percentage methond - CORRECT ANSWER -
express the major items in the balance sheet as a percent of the total assets and compare with
previous fiscal periods
UPDATED ACTUAL Questions and
CORRECT Answers
Account - CORRECT ANSWER - a device for recording changes (increases or decreases)
in the fundamental accounting elements
Account Balance - CORRECT ANSWER - the difference between the total debits and the
total credits in an account
Accounting Cycle - CORRECT ANSWER - the process involved in journalizing, posting
to the ledger, taking a trial balance, preparing statements, making adjusting and closing entries,
and preparing a post-closing trial balance, which is repeated each fiscal period
Accounting Equation - CORRECT ANSWER - assets equal liabilities plus owner's equity
Account Payable - CORRECT ANSWER - an unwritten promise to pay creditors for
property such as merchandise, supplies, or equipment purchased on credit, or for services
received on credit
Account Receivable - CORRECT ANSWER - an unwritten promise by a customer to pay
at a later date for goods sold or services rendered
Accounts Receivable Turnover - CORRECT ANSWER - measures how many times per
year receivables are collected.
Accrual Accounting - CORRECT ANSWER - recording in each fiscal period applicable
expenses, whether paid or not, and income earned.
Accrued Expense - CORRECT ANSWER - an expense incurred in operating a business
during an accounting period but not yet paid
, Accrued Income - CORRECT ANSWER - income actually earned during an accounting
period but which will not be received until a future period
Acid Test Ratio/Quick Ratio - CORRECT ANSWER - quick assets divided by current
liabilities
Activity Analysis - CORRECT ANSWER - measures how efficiently a firm is utilizing its
assets
Adjusted Trial Balance - CORRECT ANSWER - a trial balance taken after adjusting
entries have been recorded
Adjusting Entries - CORRECT ANSWER - entries made at the conclusion of a fiscal
period to bring accounts up to date
Allowance for Doubtful Accounts (Allowance for Bad Debts) - CORRECT ANSWER -a
contra account utilized to accumulate totals against accounts receivable
Assets - CORRECT ANSWER - property of monetary value owned by a business
Bad Debts Expense/Uncollectible Accounts Expense/Loss from Uncollectible Accounts -
CORRECT ANSWER - accounts receivable that are uncollectible
Balance Sheet/Statement of Financial Position/Statement of Financial Condition - CORRECT
ANSWER - a formal financial statement illustrating the assets, liabilities, and owner's
equity of a business as of a specific date
Balance sheet common-size statements/percentage methond - CORRECT ANSWER -
express the major items in the balance sheet as a percent of the total assets and compare with
previous fiscal periods
