Accounting Chapter 2
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List of accounts and their balances at a point in time, total debit balances equal total credit balances.
Recorded on the left side; an entry that increases asset and expense accounts, decreases liability, revenue, and most equity accounts.
Recorded on the right side; an entry that decreases assets and expense accounts and increases liability, revenue, and most equity accounts.
Assets- Left Side
Liabilities- Right Side
Equity- Right side
Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Assets that represent prepayments of future expenses (not current expenses).
General Ledger (Ledger)
Record containing all accounts (with amounts) for a business; also called general ledger., is a record containing all accounts used by a company.
Record containing all accounts (with amounts) for a business.
Chart of Accounts
List of accounts used by a company; includes an identification # for each account.
Amounts owed but not yet paid.
Tool used to show the effects of transaction and events on individual accounts.
1) Analyze each transaction and event from source documents.
2) Record revelant transactions and events in a journal.
3) Post journal info to ledger accounts.
4) Prepare and analyze trial balance.
What would you like to do?
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