click below
click below
Normal Size Small Size show me how
Prin. Acct. Ch. 2
Terms and Definitions
Question | Answer |
---|---|
Account | A record of increases and decreases in specific asset, liability, or owner's equity items. |
Chart of Accounts | A list of accounts and the account numbers that identify their location in he ledger. |
Compound Entry | A journal entry that involves three or more accounts. |
Credit | The right side of an account |
Debit | The left side of an account |
Double-Entry System | A system that records in appropriate accounts the dual effect of each transaction |
General Journal | The most basic form of a journal |
General Ledger | A ledger that contains all asset, liability, and owner's equity accounts. |
Journal | An accounting record in which transactions are initially recorded in chronological order. |
Journalizing | The entering of transaction data in the journal. |
Ledger | The entire group of accounts maintained by a company. |
Normal Balance | An account balance on the side where an increase in the account is recorded. |
Posting | The procedure of transferring journal entries to the ledger accounts. |
Simple Entry | A journal entry that involves only two accounts. |
T Account | The basic form of an account. |
Three-Column Form of Account | A form with columns for debit, credit, and balance amounts in the account. |
Trial Balance | A list of accounts and their balances at a given time. |