Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense.

Difference between total debits and total credits (including the beginning balance) for an account.

Balance column account

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

List of accounts used by a company; includes an identification number for each account.

Compound journal entry

Journal entry that affects at least three accounts.

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

Individuals or organizations entitled to receive payments.

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

Double-entry Accounting

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

All-purpose journal for recording the debits and credits of transactions and events.

Record in which transactions are entered before they are posted to ledger accounts; also called book of original entry.

Process of recording transactions in a journal.

Process of transferring journal entry information to the ledger; computerized systems automate this process.

Posting-reference column

A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.

Source of information for accounting entries that can be in either paper or electronic form; also called business papers

Tool used to show the effects of transactions and events on individual accounts.

List of accounts and their balances at a point in time; total debit balances equal total credit balances.

Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.

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Ch.2

Accounting Ch.2

Term	Definition
Account	Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense.
Account Balance	Difference between total debits and total credits (including the beginning balance) for an account.
Balance column account	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	List of accounts used by a company; includes an identification number for each account.
Compound journal entry	Journal entry that affects at least three accounts.
Credit	Recorded on the right side; an entry that decreases asset and expense accounts, and increases liability, revenue, and most equity accounts; abbreviated Cr.
Creditors	Individuals or organizations entitled to receive payments.
Debit	Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability, revenue, and most equity accounts; abbreviated Dr.
Double-entry Accounting	Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
General Journal	All-purpose journal for recording the debits and credits of transactions and events.
Journal	Record in which transactions are entered before they are posted to ledger accounts; also called book of original entry.
Journalizing	Process of recording transactions in a journal.
Posting	Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting-reference column	A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Source documents	Source of information for accounting entries that can be in either paper or electronic form; also called business papers
T-accounts	Tool used to show the effects of transactions and events on individual accounts.
Trail balance	List of accounts and their balances at a point in time; total debit balances equal total credit balances.
Unearned revenue	Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.

Created by: 1205581920

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