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Chapter 4

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 and credits
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 of a ledger account. The T account is a tool used to analyze translations.
Normal balance The increase side of an account. The word normal here means usual.
Created by: 238718
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