Flashcards in Chapter 2 Vocabulary Deck (29):
A claim against the customer created by selling merchandise or services on credit.
The resources owned by a business.
balance of the account
The amount of the difference between the debits and the credits that have been entered into an account.
chart of accounts
A list of the accounts in the ledger.
correcting journal entry
An entry that is prepared when an error has already been journalized and posted.
The stock outstanding when a corporation has issued only one class of stock.
Amount entered on the right side of an account.
Amount entered on the left side of an account.
Distribution of a corporation’s earnings to stockholders.
double-entry accounting system
A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits.
Assets used up or services consumed in the process of generating revenues.
Financial analysis that compares an item in a current statement with the same item in prior statements.
The initial record in which the effects of a transaction are recorded.
The form of recording a transaction in a journal.
The process of recording a transaction in the journal.
A group of accounts for a business.
The rights of creditors that represent debts of the business.
normal balance of an account
The normal balance of an account can be either a debit or a credit depending on whether increases in the account are recorded as debits or credits.
The process of transferring the debits and credits from the journal entries to the accounts.
Net income retained in a corporation.
Increases in assets from performing services or delivering products to customers.
rules of debit and credit
In the double-entry accounting system, specific rules for recording debits and credits based on the type of account.
An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.
The owners’ equity in a corporation.
The coordination and control of materials, services, information, and finances as they move in a process from supplier, through the manufacturer, wholesaler, and retailer to the consumer.
An error in which the order of the digits is changed, such as writing $542 as $452 or $524.
A summary listing of the titles and balances of accounts in the ledger.
unadjusted trial balance
A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.