AcctCh2 Word Scramble
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| Term | Definition |
| Account | A location within an accounting system where increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded and stored. |
| Account balance | The difference between the increases (including the beginning balance) and decreases in an account. |
| Balance column account | An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry. |
| Chart of accounts | A list of accounts used by a company that includes an identification number for each account. |
| Compound journal entry | A journal entry that affects at least three accounts. |
| Credit | Recorded on the right side; an entry that decreases asset and expense accounts, or increases liability, equity, and revenue accounts. |
| Creditor | Individuals or organizations entitled to receive payments from a company. |
| Debit | Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability, equity, and revenue accounts. |
| Debtors | Customers and others who owe a company. |
| Debt ratio | A ratio of total liabilities to total assets; used to describe risk associated with a company's debts. |
| Double-entry accounting | An accounting system in which each transaction affects at least two accounts and has at least one debit and one credit. |
| General Journal | A record of the debits and credits of transactions; can be used to record any transaction. |
| Journal | A record where transactions are recorded before they are posted to ledger accounts; also called book of original entry. |
| Journalizing | Process of recording transactions in a journal. |
| Ledger | Record containing all accounts of a business. |
| Owner's capital | Account showing the owner's claim on company assets; equals owner investments plus net income (or less net losses) minus owner withdrawals since the company's inception; also referred to as equity. |
| Posting reference (PR) column | The process of transferring journal entry information to the ledger. |
| Source documents | Another name for business papers; these documents are the source of information for accounting entries and can be in either paper or electronic form. |
| T-account | An account form used as a tool to show the effects of transactions and events on specific accounts. |
| Trial balance | A list of accounts and their balances at a point in time; total debt balances equal total credit balances. |
| Unearned revenues | Liabilities created by advance cash payments from customers for products or service; revenues are earned when the products or services are delivered in the future. |
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