A location within an accounting system where increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded and stored.

The difference between the increases (including the beginning balance) and decreases in an account.

Balance column account

An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.

A list of accounts used by a company that includes an identification number for each account.

Compound journal entry

A journal entry that affects at least three accounts.

Recorded on the right side; an entry that decreases asset and expense accounts, or increases liability, equity, and revenue accounts.

Individuals or organizations entitled to receive payments from a company.

Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability, equity, and revenue accounts.

Customers and others who owe a company.

A ratio of total liabilities to total assets; used to describe risk associated with a company's debts.

Double-entry accounting

An accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.

A record of the debits and credits of transactions; can be used to record any transaction.

A record where transactions are recorded before they are posted to ledger accounts; also called book of original entry.

Process of recording transactions in a journal.

Record containing all accounts of a business.

Account showing the owner's claim on company assets; equals owner investments plus net income (or less net losses) minus owner withdrawals since the company's inception; also referred to as equity.

Posting reference (PR) column

The process of transferring journal entry information to the ledger.

Another name for business papers; these documents are the source of information for accounting entries and can be in either paper or electronic form.

An account form used as a tool to show the effects of transactions and events on specific accounts.

A list of accounts and their balances at a point in time; total debt balances equal total credit balances.

Liabilities created by advance cash payments from customers for products or service; revenues are earned when the products or services are delivered in the future.

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AcctCh2

Dual-Credit Accounting Chapter 2

Term	Definition
Account	A location within an accounting system where increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded and stored.
Account balance	The difference between the increases (including the beginning balance) and decreases in an account.
Balance column account	An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Chart of accounts	A list of accounts used by a company that includes an identification number for each account.
Compound journal entry	A journal entry that affects at least three accounts.
Credit	Recorded on the right side; an entry that decreases asset and expense accounts, or increases liability, equity, and revenue accounts.
Creditor	Individuals or organizations entitled to receive payments from a company.
Debit	Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability, equity, and revenue accounts.
Debtors	Customers and others who owe a company.
Debt ratio	A ratio of total liabilities to total assets; used to describe risk associated with a company's debts.
Double-entry accounting	An accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
General Journal	A record of the debits and credits of transactions; can be used to record any transaction.
Journal	A record where transactions are recorded before they are posted to ledger accounts; also called book of original entry.
Journalizing	Process of recording transactions in a journal.
Ledger	Record containing all accounts of a business.
Owner's capital	Account showing the owner's claim on company assets; equals owner investments plus net income (or less net losses) minus owner withdrawals since the company's inception; also referred to as equity.
Posting reference (PR) column	The process of transferring journal entry information to the ledger.
Source documents	Another name for business papers; these documents are the source of information for accounting entries and can be in either paper or electronic form.
T-account	An account form used as a tool to show the effects of transactions and events on specific accounts.
Trial balance	A list of accounts and their balances at a point in time; total debt balances equal total credit balances.
Unearned revenues	Liabilities created by advance cash payments from customers for products or service; revenues are earned when the products or services are delivered in the future.

Created by: DarciEven

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