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Chapter 4

Accounting

TermDefinition
Chart of Account A list of all accounts used by a business
Credit An agreement to pay for a purchase at a later time; an entry on the right side of an account
Debit An entry on the left side of an account
Double-Entry Accounting A system that recognizes the different sides of business transaction as debits and credits
Ledger A group of accounts; also refer to as a general ledger
Normal Balance The increase side of an account. The word normal here means usual
T Account A visual representation of a ledger account. The T account is a tool used to analyzed transaction.
Created by: 226818
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