| A | B |
|---|
| drawing balance | debit |
| capital balance | credit |
| asset balance | debit |
| liability balance | credit |
| expense balance | debit |
| revenue balance | credit |
| income statement | shows net income or net loss |
| accounting equation | assets=liabilities + owner's equity |
| reconcile bank statement | bring bank statement and checkbook balance into agreement |
| accounts receivable | asset account |
| source document | check stub |
| balance sheet | reports assets, liabilities, and owner's equity |
| blank endorsement | name on back of check |
| restrictive endorsement | for deposit only |
| special / full endorsement | transfer check to another party |
| transaction | business activity |
| general ledger | contains each business account |
| double-entry accounting | records debit and credit parts |
| journalizing | recording transactions in a journal |
| posting | transferring information from the journal to the ledger |
| double ruling | totals are in balance |
| net income | revenue is greater than expenses |
| worksheet | working paper |
| income summary | temporary account |
| canceled checks | checks cleared by the bank |
| outstanding checks | checks not cleared by the bank |
| payee | to whom the check is written |
| drawer | person who signs the check |
| drawee | bank who pays the check |
| post-dated check | written for a future date |
| T-account | tool used to show increases and decreases |
| anything you own | asset |
| anything you owe | liability |
| single ruling | shows addition or subraction |
| withdrawal | take money out for personal reasons |
| on account | money owed to creditors |
| fiscal period | accounting period |
| permanent accounts | balance at the beginning of the accounting period |
| post-closing trial balance | prepared after closing entries have been posted |
| NSF check | insufficient funds |
