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accounting chapter 4
| Question | Answer |
|---|---|
| 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 the chart |
| debit | an entry on the left side of an account |
| double entry accounting | A system that recognizes that different sides of business transactions as debit and credit |
| 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. |