WGU D102 Financial Accounting
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1. Account An accounting record in which the results of transactions are accumulated;
shows increases, decreases, and a balance
2. Accounts Receiv- A current asset representing money due for services performed or merchan-
able dise sold on credit
3. 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
4. Accrual Basis Ac- A system of accounting in which revenues and expenses are recorded as they
counting are earned and incurred, not necessarily when cash is received or paid
5. Accumulated De- Reflects the wear and tear, or depreciation, of items since they were originally
preciation purchased
6. Additional Paid-in Capital invested by stockholders that exceeds the par value of the issued shares
Capital
7. 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
8. Allowance Method The recording of estimated losses due to uncollectible accounts as expenses
during the period in which the sales occurred
9. Allowance for Bad A contra account, deducted from accounts receivable, that shows the estimated
Debts losses from uncollectible accounts
10. Amortization The process of cost allocation that assigns the original cost of an intangible
asset to the periods benefited
11. Articulation The interrelationship among the financial statements
, WGU D102 Financial Accounting
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12. Assets Economic resources that are owned or controlled by a company
13. Audit Committee Members of a company's board of directors who are responsible for dealing
with the external and internal auditors
14. Average Costing An inventory cost flow assumption 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
15. Bad Debt Expense An account that represents the portion of the current period's credit sales that
are estimated to be uncollectible
16. Bad Debts An uncollectible account receivable
17. Balance Sheet A listing of an organization's assets and of its liabilities at a certain time
18. 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
19. Board of Directors Individuals elected by the stockholders to govern a corporation
20. Bonus Additional compensation beyond the regular compensation that is paid to
employees if certain objectives are achieved
21. Book Value For a long-term operating asset, the asset's original cost less any accumulated
depreciation
22. Business Docu- Records of transactions used as the basis for recording accounting entries;
ments include invoices, check stubs, receipts, and similar business papers
23. Calendar Year An entity's reporting year, from January 1 to December 31
24. Cash
, WGU D102 Financial Accounting
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Coins, currency, money orders, checks, and funds on deposit with financial
institutions.
25. Cash Basis Ac- A system of accounting in which transactions are recorded and revenues and
counting expenses are recognized only when cash is received or paid
26. Cash Collection The recovery of cash from a business or individual with which you have
previously entered into a transaction.
27. Cash Dividends A cash distribution of earnings to stockholders
28. Cash Equivalents Short-term, highly liquid investments such as Treasury bills, commercial paper,
and money market funds
29. Chart of Accounts A systematic listing of all accounts used by a company
30. Closing Entries Entries that reduce all nominal (temporary) accounts to a zero balance at the
end of each accounting period, transferring their preclosing balances to a
permanent balance sheet account
31. Common Stock The most frequently issued class of stock; typically provides a voting right but
is secondary to preferred stock in dividend and liquidation rights
32. Compound Interest Interest earned on your interest
33. Compound Journal A journal entry that involves more than one debit or more than one credit or
Entry both
34. Consignment An arrangement whereby merchandise owned by one party, the consignor, is
sold by another party, the consignee, usually on a commission basis
35. Consolidated Fi- Statement that combines the financial results of a "parent company" with other
nancial Statements companies that it owns, called subsidiaries
36. Contingency
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1. Account An accounting record in which the results of transactions are accumulated;
shows increases, decreases, and a balance
2. Accounts Receiv- A current asset representing money due for services performed or merchan-
able dise sold on credit
3. 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
4. Accrual Basis Ac- A system of accounting in which revenues and expenses are recorded as they
counting are earned and incurred, not necessarily when cash is received or paid
5. Accumulated De- Reflects the wear and tear, or depreciation, of items since they were originally
preciation purchased
6. Additional Paid-in Capital invested by stockholders that exceeds the par value of the issued shares
Capital
7. 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
8. Allowance Method The recording of estimated losses due to uncollectible accounts as expenses
during the period in which the sales occurred
9. Allowance for Bad A contra account, deducted from accounts receivable, that shows the estimated
Debts losses from uncollectible accounts
10. Amortization The process of cost allocation that assigns the original cost of an intangible
asset to the periods benefited
11. Articulation The interrelationship among the financial statements
, WGU D102 Financial Accounting
Study online at https://quizlet.com/_9b274z
12. Assets Economic resources that are owned or controlled by a company
13. Audit Committee Members of a company's board of directors who are responsible for dealing
with the external and internal auditors
14. Average Costing An inventory cost flow assumption 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
15. Bad Debt Expense An account that represents the portion of the current period's credit sales that
are estimated to be uncollectible
16. Bad Debts An uncollectible account receivable
17. Balance Sheet A listing of an organization's assets and of its liabilities at a certain time
18. 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
19. Board of Directors Individuals elected by the stockholders to govern a corporation
20. Bonus Additional compensation beyond the regular compensation that is paid to
employees if certain objectives are achieved
21. Book Value For a long-term operating asset, the asset's original cost less any accumulated
depreciation
22. Business Docu- Records of transactions used as the basis for recording accounting entries;
ments include invoices, check stubs, receipts, and similar business papers
23. Calendar Year An entity's reporting year, from January 1 to December 31
24. Cash
, WGU D102 Financial Accounting
Study online at https://quizlet.com/_9b274z
Coins, currency, money orders, checks, and funds on deposit with financial
institutions.
25. Cash Basis Ac- A system of accounting in which transactions are recorded and revenues and
counting expenses are recognized only when cash is received or paid
26. Cash Collection The recovery of cash from a business or individual with which you have
previously entered into a transaction.
27. Cash Dividends A cash distribution of earnings to stockholders
28. Cash Equivalents Short-term, highly liquid investments such as Treasury bills, commercial paper,
and money market funds
29. Chart of Accounts A systematic listing of all accounts used by a company
30. Closing Entries Entries that reduce all nominal (temporary) accounts to a zero balance at the
end of each accounting period, transferring their preclosing balances to a
permanent balance sheet account
31. Common Stock The most frequently issued class of stock; typically provides a voting right but
is secondary to preferred stock in dividend and liquidation rights
32. Compound Interest Interest earned on your interest
33. Compound Journal A journal entry that involves more than one debit or more than one credit or
Entry both
34. Consignment An arrangement whereby merchandise owned by one party, the consignor, is
sold by another party, the consignee, usually on a commission basis
35. Consolidated Fi- Statement that combines the financial results of a "parent company" with other
nancial Statements companies that it owns, called subsidiaries
36. Contingency
