| A | B |
|---|
| special amount column | A journal amount column headed with an account title. |
| service business | A business that performs an activity for a fee. |
| work sheet | A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. |
| closing entries | Journal entries used to prepare temporary accounts for a new fiscal period. |
| posting | Transferring information from a journal entry to a ledger account. |
| trial balance | A proof of the equality of debits and credits in a general ledger. |
| proprietorship | A business owned by one person. |
| post-closing trial balance | A trial balance prepared after the closing entries are posted. |
| temporary accounts | Accounts used to accumulate information until it is transferred to the owner's capital account. |
| T account | An accounting device used to analyze transactions. |
| balance sheet | A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
| ledger | A group of accounts |
| revenue | An increase in owner's equity resulting from the operation of a business. |
| adjusting entries | Journal entries recorded to update general ledger accounts at the end of a fiscal period. |
| endorsement | A signature or stamp on the back of a check, transferring ownership. |
| expense | A decrease in owner's equity resulting from the operation of a business |
| income statement | A financial statement showing the revenue and expenses for a fiscal period. |
| liability | An amount owed by a business |
| left side | In a T account, the debit side is ______. |
| accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity. |
| Accounting Cycle | The series of accounting activities included in recording financial information for a fiscal period. |
| source document | A business paper from which information is obtained for a journal entry. |
| accounting | Planning, recording, analyzing, and interpreting financial information |
| transaction | A business activity that changes assets, liabilities or owner's equity |
| account balance | The amount in an account |
| capital | The account used to summarize the owner's equity in the business |
| account | A record summarizing all the information pertaining to a single item in the accounting equation |
| assets | Anthing of value that is owned |
| sale on account | A sale for which cash will be received at a later date |
| withdrawals | Assets taken out of a business for the owner's personal use |
| financial statements | Financial reports that summarize the financial conditions and operations of a business |
| debit side | The normal balance side of an asset account is the ________. |
| journal | A form for recording transactions in chronological order. |
| bank statement | A report of deposits, withdrawals, and bank balances sent to a depositor by a bank. |
| petty cash | An amount of cash kept on hand and used for making small payments. |
