| A | B |
|---|
| accounting | Planning, recording, analyzing and interpreting financial information |
| financial statements | reports that summarize the financial conditions of a business |
| asset | anything of value that is owned |
| liability | an amount owed by a business |
| owner's equity | the amount remaining after all liabilities have been subtracted from all assets |
| capital | the account used to show an owner's equity in a business |
| account balance | the amount in the account |
| revenue | an increase in equity as a result of sale |
| sale on account | a sale for which cash will be received later |
| expense | a decrease in equity as a result of operating a business |
| T-account | accounting device used to analyze transactions |
| debit | the left side of a T-account |
| credit | the right side of a T-account |
| normal balance | the side of the account that is increased |
| chart of accounts | a list of accounts used by a business |
| journal | a form for recording journals in a chronological order |
| journalizing | recording transactions in a journal |
| special amount column | a journal amount column headed with an account title |
| general amount column | a journal amount that is not headed with an account title |
| entry | the information for each transaction in the journal |
| double entry accounting | recording debit and credit parts of a transaction |
| ledger | a group of account |
| account number | a number assigned to each account |
| file maintenance | procedure for arranging accounts in a general ledger, assigning account numbers and keeping records current |
| opening an account | writing an account title and number at the top of a ledger |
