BAT4M CH 1 & 2 KEY TERMS

Definition: the group of accounts maintained by a company.

• Assets

• Posting

• Trial Balance

• Ledger

Definition: A fiscal period consisting of 12 consecutive months.

• Fiscal Year

• Interim Period

• Calendar Year

• Fiscal Period

Definition: The process of planning, recording, analyzing, and interpreting financial information.

• Posting

• Auditing

• Accounting

• Assets

A list of all accounts and account numbers used by a business is known as:

• Posting

• Current Assets

• Trial Balance

• Chart of Accounts

The principles of right and wrong that guide an individual in making decisions are referred to as:

• Accounting

• Ethics

• Equity

• Auditing

A journal entry that involves three or more accounts is called:

• Compound Entry

• Posting

• Fiscal Year

• Trial Balance

A business owned by stockholders who share in its profits but are not personally responsible for its debts

• Corporation

• Accounting

• Assets

• Proprietorship

Assets that companies expect to convert to cash or use up within one year or the operating cycle, whichever is longer.

• Fixed Assets

• Current Assets

• Unearned Revenue

• Chart Of Accounts

A liability created when a business collects cash from customers in advance of providing services or delivering goods.

• Assets

• Current Assets

• Prepaid Expenses

• Unearned Revenue

Reviewing and evaluating the information used to prepare a company's financial statements.

• Accounting

• Posting

• Auditing

• Bookkeeping