Chapter 2 Flashcards
Account
pg. 51
Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense.
Account Balance
pg. 55
Difference between total debits and total credits (including the beginning balance) for an account.
Balance Column Account
pg. 58
Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Chart of Accounts
pg. 54
List of accounts used by a company; includes an identification number for each account.
Compound Journal Entry
pg. 61
Journal entry that affects at least three accounts.
Credit
pg. 55
Recorded on the right side; an entry that decreases asset and expense accounts, and increases liability, revenue, and most equity accounts; abbreviated Cr.
Creditors
pg. 52
Individuals or organizations entitled to receive payments.
Debit
pg. 55
Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability,revenue, and most equity accounts; abbreviated Dr.
Double-entry Accounting
pg. 55
Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
General Journal
pg. 56
All-purpose journal for recording the debits and credits of transactions and events.
General Ledger
pg. 51
Record containing all accounts (with amounts) for a business; also called a ledger.
Journal
pg. 56
Record in which transactions are entered before they are posted to ledger accounts; also called book of original entry.
Journalizing
pg. 56
Process of recording transaction in a journal.
Posting
pg. 56
Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting Reference (PR) Column pg. 58
A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
