| A | B |
|---|
| Trial Balance | a sheet that displays all of the accounts and tests whether or not the entire debit balances equal the total of all the credit balances |
| Journal | chronological (date-ordered) records of transactions, which are the first basic entry of debit and credit for each transaction |
| Closing Entries | must be made to close out the revenue and expense accounts and bring them to zero so that the cycle can begin again |
| Source Documents | documents that serve as proof of a transaction |
| Adjusted Trial Balance | involve bringing an asset or liability account to its proper amount and updating the corresponding revenue or expense account |
| Ledger | a collective term for the accounts of a business. They are also often referred to as T-accounts |
| Financial Statements | statement prepared using the corrected account balances (such as balance sheet and income statement) |
| Debit | left side of the T account |
| Credit | right side of the T account |
| Accounting Equation | shows the relationship among assets, liabilities, and owner's equity |
