Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 2 vocab
| Term | Definition |
|---|---|
| account | an accounting form used to record the increases and decreases in each financial statement |
| account receivable | an asset, a claim against the customer created by selling merchandise on credit |
| assets | resources owned by a business |
| balance of the account | the difference between debits and credits that have been entered into an account |
| chart of accounts | a list of the accounts in the ledger |
| common stock | an account representing the rights of investors in a corporation |
| correcting journal entry | an entry that is prepared to correct an error to an entry that has already been posted |
| credit | amount the right side |
| debit | amount on the left side |
| dividends | distributions of earnings to stockholders |
| double entry accounting system | records increase and decreases so debits and credits equal each other |
| expenses | debts paid to keep a business running |
| four column account | has debit and credit transaction as well as balance columns for indicating the account balance after each transition |
| horizontal analysis | compares an item in a current statement with the same item in a previous statement in terms of the amount and percentage of change |
| journal | the initial record in which the effects of a transition are recorded |
| journal entry | record of a transaction entered in a journal made up of at least one debit and credit |
| journalizing | the process of recording a transaction in a journal |
| ledger | a group of accounts for a business |
| liabilities | what you owe |
| normal balance of an account | the side of an account in which the balance normally appears based on the type of account and whether it is increased by debits or credits |
| posting | the process of transferring the debits and credits from the journal entries to the accounts |
| prepaid expenses | assets created by making advanced payments for expense items that will be used in the business in the future |
| retained earnings | an account representing the net income retained in a corporation |
| revenues | amount earned from providing services or selling goods |
| rules of debit and credit | in the double entry accounting system specific rules for recording the debits and credits based on the type of account |
| slide | an error in which the entire number is moved one or two spaces to the right or the left |
| stockholder's equity | the stockholder's rights to assets in a corporation |
| T account | the simplest form of an account with a title, a debit and credit side |
| transposition | an error in which the order of the digits is changed |
| trial balance | a summary listing of the titles and balance of accounts in the ledger used to verify that debits equal credits |
| two column journal | a form of journal in which there are only two amount columns one for debits and credits |
| unadjusted trial balance | a trial balance prepared at the end of an accounting period before adjusting entries are made |
| unearned revenue | the liability created by receiving revenue in advance |
Created by:
hellocookies
Popular Accounting sets