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accounting b3 part 2
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Term | Definition |
---|---|
balance | The difference between the footings of an account. |
Credit | To enter an amount on the right side of an account. |
credit balance | The normal balance of liability, owner's equity, and revenue accounts. |
debit | To enter an amount on the left side of an account. |
debit balance | The normal balance of asset, expense, and drawing accounts. |
double-entry accounting | A system in which each transaction has a dual effect on the accounting elements. |
footings | The total dollar amounts on the debit and credit sides of an account. |
normal balance | The side of an account that is increased. |
trial balance | A list of all accounts, showing the title and balance of each account, used to prove that the sum of the debits equals the sum of the credits. |