Flashcards in Ch 3 - Analyzing Bus Trans VOCAB Deck (16):
Define account balance.
difference between the amounts recorded on the two sides of an account
written records of the assets, liabilities, and owner's equity of a business
Define chart of accounts.
list of the accounts used by a business to record its financial transactions
means of identifying each account as an asset, liability or owner's equity
entry on the right side of an account
entry on the left side of the account
Define double-entry system.
accounting system that involves recording the effects of each transaction as debits and credits
Define drawing account.
special type of owner's equity account set up to record the owner's withdrawal of cash from the business
small pencil figure written at the bottom of an amount column showing the sum of the entries in the column
Define normal balance.
the increase side of an account
Define permanent account.
an account that is kept open from one accounting period to the next
an accounting error involving a misplaced decimal point
Define T Account.
type of account, resembling a T, used to analyze the effects of a business transaction
Define temporary account.
account whose balance is transferred to another account at the end of an accounting period.
an accounting error involving misplaced digits in a number.