1649420
Description
Flashcards by Kate Coleman, updated more than 1 year ago
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Created by Kate Coleman
about 10 years ago
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| Question | Answer |
| Account Balance | The difference between the amounts recorded on the two sides of an account. |
| Accounts | Written records of the assets, liabilities, and owner's equity of a business. |
| Classification | A means of identifying each account as an asset, liability, or owner's equity. |
| Footing | A small pencil figure written at the base of the amount column showing the sum of the entries in the column. |
| T Account |
Type of account used to analyze the affects of a business transaction.
Image:
pg054_1 (image/jpg)
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| T Accouting - Liability |
Right side shows increases
Left side shows decreases
Image:
pg054_1 (image/jpg)
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| T account - Assets |
Left side shows increases
Right side shows decreases
Image:
pg054_1 (image/jpg)
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| Chart of accounts | A list of the accounts used by a business to record its financial transactions. |
| Credit | An entry on the right side of an account. |
| Debit | An entry on the left side of an account. |
| Double entry system | An accounting system that involves recording the effects of each transaction as debits and credits. |
| Drawing account | Special type of owner's equity account set up to record the owner's withdrawal of cash from the business. |
| Permanent account | Account that is kept open from one accounting period to the next. |
| Slide | Accounting error involving a misplaced decimal point. |
| Temporary account | Account whose balance is transferred to another account at the end of an accounting period. |
| Transposition | Accounting error involving misplaced digits in a number. |
| Trial balance | Statement to test the accuracy of total debits and credits after transactions have been recorded. |
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