Korea Computerized Accounting Level 2 flashcards
Korea Computerized Accounting Level 2 · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Accounting Equation
- Assets equal liabilities plus equity. Every recorded transaction must keep this equality, so total debits always equal total credits in the ledger.
- Double-Entry Rule
- Each transaction is recorded in at least two accounts with equal total debits and credits, so the trial balance stays in balance.
- Trial Balance
- A list of all general ledger account balances at a date, used to verify that total debits equal total credits before preparing financial statements.
- Accrual Basis
- Revenue is recognized when earned and expenses when incurred, regardless of when cash is received or paid.
- Nominal Account
- A temporary account for revenue, expense, or dividend balances that is closed to retained earnings at the end of each accounting period.
- Contra Account
- An account with a normal balance opposite to its related account, such as accumulated depreciation or allowance for doubtful accounts, shown as a deduction.
- Straight-Line Depreciation
- Annual depreciation equals cost minus residual value, divided by useful life. The same amount is recorded each full year of the asset's life.
- Allowance Method
- Estimated uncollectible receivables are expensed at period end through an allowance account; later write-offs reduce both the allowance and receivables.
- Revenue Recognition
- Revenue is recorded when a performance obligation is satisfied, measured at the transaction price allocated to that obligation in the contract.
- Treasury Shares
- A company's own shares that it has reacquired. They are deducted from equity and carry no voting or dividend rights while held.
- Closing Entries
- Period-end entries that zero out revenue and expense accounts and transfer the net result to retained earnings before the next period begins.
- Predetermined Overhead Rate
- Estimated total manufacturing overhead divided by the estimated allocation base for the period, used to apply overhead to production as it occurs.
- Underapplied Overhead
- The amount by which actual overhead exceeds overhead applied to production. It is a debit balance in the overhead account before closing.
- Equivalent Units
- The number of fully completed units that the work done on partially completed units represents, computed as completed units plus ending work in process times completion percentage.
- Product Cost
- A cost assigned to inventory, consisting of direct materials, direct labor, and manufacturing overhead. It is expensed when the goods are sold.
- Period Cost
- A selling or administrative cost that is not assigned to inventory and is expensed in the period it is incurred.
- Step-Down Allocation
- A service department cost allocation method that allocates costs in a ranked order; once a department's costs are allocated, it receives no further allocations.
- Value-Added Tax Payable
- Output tax charged on taxable sales minus input tax on purchases supported by valid tax invoices. A negative result may be refundable.
- Zero-Rated Supply
- A taxable supply taxed at a 0% rate, so no output tax is charged but related input tax remains deductible and refundable.
- Exempt Supply
- A supply outside the VAT scope. No output tax is charged, and input tax attributable to it cannot be deducted.
- Corporate Tax Base
- Accounting profit adjusted for non-deductible expenses, non-taxable income, and special deductions, on which the corporate tax rate is applied.
- Withholding Tax
- Tax deducted by the payer from certain domestic payments and remitted to the tax authority on behalf of the recipient by the statutory deadline.
- Electronic Tax Invoice
- A tax invoice transmitted electronically to the tax authority at the time of supply, containing supplier, buyer, amount, and VAT details.
- Chart of Accounts
- A coded list of all general ledger accounts, organized by financial statement category, that structures all transaction entry and reporting.
- Opening Balance Entry
- Balances entered as of the fiscal year start. Total debits must equal total credits before any posting or report is allowed.
- Control Account
- A general ledger account whose balance must equal the sum of its subsidiary ledger accounts, such as accounts receivable or accounts payable.
- Period Close
- A system function that locks a fiscal period so no further postings are accepted until an authorized user reopens it.
- Audit Trail
- A system log recording who created, modified, approved, or posted each voucher, supporting internal control and tax inspection.
- Sales Voucher
- A transaction that debits accounts receivable and credits sales plus output VAT, recording a taxable sale on credit.
- Purchase Voucher
- A transaction that debits purchases and input VAT and credits accounts payable, recording a taxable purchase supported by a tax invoice.
- Posting
- The process that transfers saved voucher amounts to the general ledger and subsidiary ledgers, making them available in reports.
- Bank Reconciliation
- A comparison of the book cash balance with the bank statement, explaining differences such as outstanding checks and deposits in transit.