Chapter 3 Flashcards
System that ensures that each business transaction has equal and opposite effects in at least two different accounts in the accounting system
Double entry system of book-keeping
Record in ledgers, used to collect and store debit and credit amounts relating to an asset, a liability, capital, an income or an expense
Account
Act of using one book to transfer entries into accounts in another book, thereby performing or completing double entry
Posting
Books that collect groups of similar accounts
Ledgers
Value of goods bought for resale. For example, to a used car dealer, a car bought for resale
Purchases
A balance c/d on the credit side of an account. Result of the total debits being more than the total credits
Debit balance
Balance c/d on the debit side of the account. Result of the total debits being less than the total credits
Credit balance
Account of a person or business
Personal account
Double entry system of book-keeping
System that ensures that each business transaction has equal and opposite effects in at least two different accounts in the accounting system
Account
Record in ledgers, used to collect and store debit and credit amounts relating to an asset, a liability, capital, an income or an expense
Posting
Act of using one book to transfer entries into accounts in another book, thereby performing or completing double entry
Ledgers
Books that collect groups of similar accounts
Purchases
Value of goods bought for resale. For example, to a used car dealer, a car bought for resale
Debit balance
A balance c/d on the credit side of an account. Result of the total debits being more than the total credits
Credit balance
Balance c/d on the debit side of the account. Result of the total debits being less than the total credits
