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Flashcards in Chapter 2 Deck (17):
1

A detailed record of all the increases and decreases that have occurred in an individual asset, liability, or equity during a specific period

Account

2

A written promise that a customer will pay a fixed amount of money and interest by a certain date in the future

Notes Receivable

3

Payment of an expense in advance

Prepaid Expense

4

Written promise made by the business to pay a debt in the future

Notes Payable

5

Liability that the business knows the amount owed but the bill has not been paid

Accrued Liability

6

Liability created when a business collects cash from customers in advance of providing services

Unearned Revenue

7

A list of all a company's accounts with their account numbers

Chart of Accounts

8

The record holding all the account of a business, the charges in those accounts, and their balances

Ledger

9

System of accounting where every transaction affects at least two accounts

Double-Entry System

10

Summary device with debits and credits

T-Account

11

Balance that appears on the increase side of an account

Normal Balance

12

Provides the evidence and data for accounting transactions

Source document

13

A record of transactions in date order

Journal

14

Transferring data from the journal to the ledger

Posting

15

Journal entry that is characterized by having multiple debits and or multiple credits

Compound Journal Entry

16

A list of all ledger accounts with their balances at a point in time

Trial Balance

17

Shows the proportion of assets financed with debt. Total liabilities/Total Assets

Debt Ratio