| A | B |
|---|
| double-entry accounting | financial recordkeeping system in which each business transaction affects at least two accounts |
| T account | used to show the increase or decrease in an account caused by a transaction |
| debit | amt entered on the left side |
| credit | amt entered on the right side |
| balance side | side used to record increases to the account |
| temporary capital accounts | start each new accounting period with zero balances |
| permanent accounts | continuous from one accounting period to the next |
| revenue principle | revenue is recognized and recorded on the date it is earned |
| accounting cycle | activities that help the business keep its accounting records in an orderly fashion |
| source document | paper prepared as evidence of transactions |
| invoice | form that lists specific information about a business transaction involving the buying or selling of an item |
| receipt | form prepared as a record of cash received by a business |
| memorandum | brief message that is usually written to describe a transaction that takes place within a business |
| check stub | part remaining in the business's checkbook after a check has been torn out |
| journal | chronological record of a business's transactions |
| journalizing | process of recording business transactions in a journal |
| general journal | all-purpose journal |
| chart of accoutns | lists of all accounts used for journalizing a business's transactions |
| liquidity | ease with which an asset can be converted to cash |
| posting | process of transferring info. in a journal entry to an individual account |
| trial balance | proof of equality of total debits and total credits |
| ledger | book or file that contains pages or cards of accounts |
| ledger acount form | accounting stationery used to record financial information about specific accounts |
| proving the ledger | addall debit balances and credit balances and compare the 2 totals |
| transposition error | 2 # are reversed |
| slide | decimal point is moved by mistake |
| correcting entry | require when an error in a journal entry is discovered after posting |
