Accounting 1: Chapter 2

  1. Account
    a record of increases and decreases in specific asset, liability, or owner's equity items
  2. Chart of Accounts
    a list of accounts and the account numbers that identify their location in the ledger
  3. Compound Entry
    a journal entry that involves three or more accounts
  4. Credit
    the right side of an account
  5. Debit
    the left side of an account
  6. Double-Entry System
    a system that records in appropriate accounts the dual effect of each transaction
  7. General Journal
    the most basic form of journal
  8. General Ledger
    a ledger that contains all asset, liability, and owner's equity accounts
  9. Journal
    an accounting record in which transactions are initially recorded in chronological order
  10. Journalizing
    the entering of transaction data in the journal
  11. Ledger
    the entire group of accounts maintained by a company
  12. Normal Balance
    an account balance on the side where an increase in the account is recorded
  13. Posting
    the procedure of transferring journal entries to the ledger accounts
  14. Simple Entry
    a journal entry that involves only two accounts
  15. T Account
    the basic form of an account
  16. Three-Column Form of Account
    a form with columns for debit, credit, and balance amounts in an account
  17. Trail Balance
    a list of accounts and their balances at a given time
Card Set
Accounting 1: Chapter 2
Accounting 1: Chapter 2