Chapter 2 Terms Flashcards
1
Q
Account
A
a record of increases and decreases in a specific asset, liability, equity, revenue, or expense.
2
Q
General Ledger (or Ledger)
A
a record of all accounts and their balances.
3
Q
Notes Receivable (asset account)
A
a written promise to have sum pay in the far future.
4
Q
Prepaid Accounts (asset account)
A
an asset from the prepayment of a future expense (example: insurance).
5
Q
Notes payable (liability account)
A
written promise to pay a sum in the future through a promissory note.
6
Q
Unearned Revenue Accounts (liability account)
A
Happens when a customer prepaid for an account without receiving the service.
7
Q
Accrued Liabilities
A
Amounts that are owed but not yet paid.
8
Q
Chart of Accounts
A
List of accounts a company uses, not including balances
