| A | B |
|---|
| T account | An accounting device used to analyze transactions. |
| Debit | An amount recorded on the left side. |
| Credit | An amount recorded on the right side. |
| Normal Balance | The side of the account that is increased. |
| Chart of Accounts | A list of accounts used by a business. |
| Asset | Anything of value that is owned. |
| Equities | Financial rights to the asset of a business. |
| Liability | An amount owed by a business. |
| Owner's Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| Accounting Equation | Shows the relationship among assets, liabilities, and owner's equity. |
| Capital | The account used to summarize the owner's equity in a business. |
| Revenue | An increase in owner's equity resulting from the operation of a business. |
| Sale on Account | A sale for which cash will be received at a later date. |
| Expense | A decrease in owner's equity resulting from the operation of a business. |
| Withdrawals | Assets taken out of a business for the owner's personal use. |
