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Chapter 3 vocab
Question | Answer |
---|---|
An accounting device used to analyze transactions | T Account |
The side of the account that is increased | Normal Balance |
An amount recorded on the left side | Debit |
An amount recorded on the right side | Credit |
A list of accounts used by a business | Chart of Accounts |
An increase in owner's equity resulting from the operation of a business | Revenue |
Anything of value that is owned | Assets |
An amount owed by a business | Liabilities |
The amount remaining after the value of all liabilities is subtracted from the value of all assets | Owner's Equity |
A decrease in owner's equity resulting from the operation of a business | Expenses |
Assets taken out of a business for the owner's personal use | Withdrawal |
Account a business owes money to | Accounts Payable |
Money owed to a business by its debitors | Accounts Receivable |