Acct. Vocab ch2.txt

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  1. Account
    The detailted record of the changes in a particular asset, liability, or owner's equity during a period. The basic summary device of accounting.
  2. Accrued liability
    A liability for which the business knows the amount owed but the bill has not been paid.
  3. Chart of accounts
    A list of all the accounts with their account number.
  4. Compound journal entry
    Same as a journal entry, except this entry is characterized by having multiple debits and/or multiple credits. The total debits still equal the total credits in the compound journal.
  5. Credit
    The right side of an account.
  6. Debit
    The left side of an account.
  7. Journal
    The chronological accounting record of an entity's transactions.
  8. Ledger
    The record holding all the accounts.
  9. Normal balance
    The balance that appears on the side of an account-debit or credit- where we record increase.
  10. Notes payable
    Represents debts the business owes because it signed promissory notes to borrow money or to purchase something.
  11. Note receivable
    A written promise for future collection of cash.
  12. Posting
    Copying amounts from the journal to the ledger.
  13. Prepaid expenses
    Expenses paid in advance of their use.
  14. T-account
    Summary device that is shaped like a capital "T" with debits posting on the left side and of the vertical line and credits on the right side of the vertical line.
  15. Trial balance
    A list of all the accounts with their balance.
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Acct. Vocab ch2.txt
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