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Flashcards in Chapter 3 Deck (13):
1

Accounting transactions

Economic events that require recording financial statements

2

Accounting equation

A= L + S.E

3

Main points of transactions

1. be analyzed in terms of its effects on assets, liabilities, s.e
2. the two sides must be equal
3. each change in S.E must be indicated

4

Account

an individual accounting record of increases and decreases in a specific asset, liability, stockholders equity, revenue, or expense item.

5

T- account

title the account, left is debit, right is credit

6

Debit

(Dr.)

7

Credit

(Cr.)

8

Assets, Expenses, Dividends

Increase= debit
Decrease= credit

9

Liability, Common Stock, Revenue, Retained earnings

Increase=Credit
Decrease= debit

10

Accounting information System

System of collecting and processing transaction data and communicating financial info to decision makers.

11

Double entry system

Equality of debts and credits

12

Debit balance

Debits are greater than credits

13

Credit Balance

Credits are greater than debits