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Chapter 4

Accounting

TermDefinition
Chart of Accounts A list of all accounts used by a business.
Ledger A group of accounts; also referred to as a general ledger.
Double-Entry Accounting A system that recognizes the different sides of business transactions as debits.
Debit An entry on the left side of an account.
Credit An agreement to pay for a purchase at a later time; an entry on the right side of an account.
T account A visual representation off a ledger account. The T account is a tool used to analyze transactions.
Normal Balance The increase side of an account. The word normal here means usual.
Created by: 308918