Ch 3 - Analyzing Bus Trans VOCAB Flashcards Preview

Principles of Accounting > Ch 3 - Analyzing Bus Trans VOCAB > Flashcards

Flashcards in Ch 3 - Analyzing Bus Trans VOCAB Deck (16):
1

Define account balance.

difference between the amounts recorded on the two sides of an account

2

Define accounts.

written records of the assets, liabilities, and owner's equity of a business

3

Define chart of accounts.

list of the accounts used by a business to record its financial transactions

4

Define classification.

means of identifying each account as an asset, liability or owner's equity

5

Define credit.

entry on the right side of an account

6

Define debit.

entry on the left side of the account

7

Define double-entry system.

accounting system that involves recording the effects of each transaction as debits and credits

8

Define drawing account.

special type of owner's equity account set up to record the owner's withdrawal of cash from the business

9

Define footing.

small pencil figure written at the bottom of an amount column showing the sum of the entries in the column

10

Define normal balance.

the increase side of an account

11

Define permanent account.

an account that is kept open from one accounting period to the next

12

Define slide.

an accounting error involving a misplaced decimal point

13

Define T Account.

type of account, resembling a T, used to analyze the effects of a business transaction

14

Define temporary account.

account whose balance is transferred to another account at the end of an accounting period.

15

Define transposition.

an accounting error involving misplaced digits in a number.

16

Define trial balance.

a statement to test the accuracy of total debits and credits after transactions have been recorded.