| A | B |
|---|
| Account | A(n) ___ is prepared a record of the increases and decreases and the balance for a specific item, such as supplies. |
| accounting cycle | The ___ refers to the activities a business completes within a fiscal year to keep its records in order. |
| accounting equation | Assets = Liabilities + Stockholders' Equity is the ___. |
| assets | Item of value owned or controlled by a business are called ___. |
| cash payments journal | The special journal used to record all transactions in which cash i spaid our is called ___. |
| cash receipts journal | The special journal used to record all receipts of cash is the ___. |
| contra account | A(n) ___is an account whose balance decreases another account's balance. |
| controlling account | A general ledger account whose balancemust equal the total of the account balances in a subsidiary ledger is called a(n) ___. |
| correcting entry | A(n) ___ is made in the general journal if an error has been discovered. |
| cost of merchandise | ___ includes the accounts that are used to record the actual cost to the business of merchandise that will be resold to customers. |
| credit | A(n) ___is an amount entered on the right side of an account. |
| debit | A(n) ___ is an amount entered on the left side of an account. |
| double-entry accounting | In the ___ system, every business transaction affects at least two accounts. |
| expenses | ___ are the amounts paid for goods and services used to operate a business. |
| fiscal year | The time period covered by an accounting report is called a(n) ___. |
| general journal | A two-column journal in which all types of transactions can be recorded is the ___. |
| general ledger | The ___ contains all of the accounts of a business. |
| journal | A(n) ___ is a chronological record of the transactions of a business. |
| liabilities | The creditor's claims to the assets of a business are known as ___. |
| posting | Transferring amounts from a journal to a ledger account is called ___. |
| purchases journal | The special journal used to record all transactions in which items are bought on account is the ___. |
| revenue | The money earned from the sale of goods and services is called ___. |
| sales journal | The special journal used to record the sale of merchandise on account is the ___. |
| source document | A(n) ___ is a paper that provides evidence of a business transaction. |
| stockholders' equity | The owners' claim to the assets of a corporation are referred to as ___. |
| subsidiary ledger | A ledger that is summarized in a controlling account in the general ledger is called a(n) ___. |
| trial balance | A(n) ___ is prepared to prove the equality of debits and credits in the general ledger. |
