Scavenger_Hunt

Scavenger Hunt Candace Fralix January 17, 2011 HSM/260 * GAAP-Rules that all accountants use when preparing financial statements. They use this so that all accountants are using the same standards. http://financial-dictionary.thefreedictionary.com/GAAP * Basic accounting formula- Assets= Liabilities=+ Owners Equity. For a non-profit organization the formula would be Assets= Liabilities+ Net assets. This is expressed on the balance sheet. http://www.accountingcoach.com/terms/A/accounting-equation.html * Transaction, t-account- A visual aid that is used by accountants to show what affect a journal entry has on a ledger account. The debit amounts are on the left side of the “T”, and the credit amounts are on the right side. http://www.accountingcoach.com/terms/T/t-account.html * General ledger- This is the part that holds the balance sheet and income statement accounts for documentation of the transactions. http://www.accountingcoach.com/terms/G/general-ledger.html * Debit- this is on the left side of the account. Also known as an increase in assets or a decrease in liabilities. Reduce the amount in an account. http://www.accountingcoach.com/online-accounting-course/07Xpg01.html * Credit- this is on the right side of the account. Could be a loan and usually ends in a debt. http://www.investordictionary.com/definition/credit-finance * Account balance-This is the total amount that is in an account at the end of a period. http://www.investordictionary.com/definition/account-balance * Trial balance- A worksheet that where all the balances of a ledger are put into two columns, and named a debit and credit. A trial balance is prepared for each financial period. The debit and credit should always match. http://www.investordictionary.com/definition/trial-balance * Journal- A record of entries that are in order by date. This is the book of original entry since this is where things are recorded first. From the journal the entries would be posted to selected accounts in a general ledger. http://www.accountingcoach.com/terms/J/journal.html * Assets- Assets are recourses that are owned by a company or person that have great value. Examples are cash, land, vehicles, and supplies. Assets are available on the balance sheet usually at cost. http://www.accountingcoach.com/terms/A/assets.html * Liabilities- Obligations of a company. These are amounts that are owed to lenders and suppliers. Liabilities can also be something that is received for the future. http://www.accountingcoach.com/terms/L/liabilities.html * Net assets- You get net assets by subtracting the total liabilities from total assets. Not-for-profit organizations use this term a lot. http://www.accountingcoach.com/terms/N/net-assets.html * Accounts receivable- A current asset that keeps a company from selling their goods or services on credit. An example would be an invoice saying net thirty days, and this tells us that a sale was made on credit. http://www.accountingcoach.com/terms/A/accounts-receivable.html * Accounts payable- This paper shows how much a company owes for services or items that was purchased on credit. There would be no promissory note, and the account would be referred to as trade payables. http://www.accountingcoach.com/terms/A/accounts-payable.html * Revenues- Fees that are earned from a company providing services and the amount of merchandise they sold. Revenues are recorded at the time of purchase. The term income is used more than revenues. http://www.accountingcoach.com/terms/R/revenues.html