Account Balance (p. 62)
The difference between the amounts recorded on the two sides of an account.
Accounts (p. 56)
Written records of the assets, liabilities, and owner’s equity of a business.
Chart of accounts (p. 73)
A list of the accounts used by a business to record its financial transactions.
Classification (p. 56)
A means of identifying each account as an asset, liability, or owner’s equity.
Credit (p. 70)
An entry of the right side of an account.
Debit (p. 70)
An entry of the left side of an account.
Double-entry system (p. 70)
An accounting system that involves recording the effects of each transaction as debits and credits.
Drawing account (p. 69)
A special type of owner’s equity account set up to record the owner’s withdrawal of cash from the business.
Footing (p. 62)
A small pencil figure written at the base of an amount column showing the sum of the entries in the column.
Normal balance (p. 62)
The increase side of an account.
Permanent account (p. 74)
An account that is kept open from one accounting period to the next.
Slide (p. 73)
An accounting error involving a misplaced decimal point.
T account (p. 56)
A type of account, resembling a T, used to analyze the effects of a business transaction.
Temporary account (p. 74)
An account whose balance is transferred to another account at the end of an accounting period.
Transposition (p. 73)
An accounting error involving misplaced digits in a number.
Trial balance (p. 72)
A statement to test the accuracy of total debits and credits after transactions have ben recorded.
