| A | B |
|---|
| 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 |
| withdrawal | assets taken out of a business for the owner's personal use |
| realization of revenue concept | when revenue is recorded at the time goods or services are sold |
| T-account | an accounting device used to analyze transactions |
| debit | an amount recorded on the left side of a T-account |
| credit | an amount recorded on the right side of a T-account |
| normal balance | the side of the account that is increased |
| chart of accounts | a list of accounts used by a business |
