| A | B |
|---|
| revenue | Income earned from the sale of goods or services |
| expense | the price paid for goods or services used to operate a business |
| withdrawl | owner takes cash or other assets from the business for personal use |
| ledger | where accounts are grouped together in a list |
| chart of accounts | a list of all the accounts and thier assigned acccount numbers |
| double-entry accounting | a system of recordkeeping in which each business transaction affects at least two accounts |
| T accounts | effiecient way to apply double-entry accounting |
| debit | left side of T accounts |
| credit | right side of T accounts |
| normal balance | specific side that is its normal balance side |
| temporary capital accounts | Revenue,expense,and withdrawals accounts used to collect information for a single accounting period |
| permanent accounts | are countinuous from one accounting period to the next |
| accounting cycle | accounting period of a business is seperated into activities that help the business keep its accounting records orderly |
| sorce document | paper prepared as evidence of a transaction |
| journal | record of all of the transactions of a business |
