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Debits and Credits

TermDefinition
T account An accounting device used to analyze transactions
debit An amount recorded on the left side of an account
credit An amount recorded on the right side of an account
normal balance The side of an account that is increased is called the normal balance of the account
chart of accounts A list of accounts used by a business
accounts payable Amounts to be paid in the future for goods or services already acquired
accounts receivable Amounts to be received in the future due to the sale of goods or services
Created by: DrTeague