Accounting Chapter 2

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Author:
paulba
ID:
152004
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Accounting Chapter 2
Updated:
2012-05-03 19:37:12
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Chapter
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Final
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  1. Trial Balance
    List of accounts and their balances at a point in time, total debit balances equal total credit balances.
  2. Debit (Dr)
    Recorded on the left side; an entry that increases asset and expense accounts, decreases liability, revenue, and most equity accounts.
  3. Credit (Cr)
    Recorded on the right side; an entry that decreases assets and expense accounts and increases liability, revenue, and most equity accounts.
  4. Normal Balance
    Assets- Left Side

    Liabilities- Right Side

    Equity- Right side
  5. Unearned Revenue
    Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
  6. Prepaid Expenses
    Assets that represent prepayments of future expenses (not current expenses).
  7. 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.
  8. General Journal
    Record containing all accounts (with amounts) for a business.
  9. Chart of Accounts
    List of accounts used by a company; includes an identification # for each account.
  10. Accrued Liabilites
    Amounts owed but not yet paid.
  11. T-Account
    Tool used to show the effects of transaction and events on individual accounts.
  12. Accounting Process
    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.

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