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Accounting Chapter 4

QuestionAnswer
chart of accounts 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 transactions as debits and credits.
ledger A group of accounts; also referred 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 analyze transactions.
Created by: ashipley250
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