| A | B |
|---|
| asset | Anything ow value that is owned. |
| liability | An amount owed by a business. |
| equities | Financial rights to the assets of a business. |
| owner's equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity. |
| source document | A business papar from which information is obtained for a journal entry. |
| journal | A form for recording transactions in chronological order. |
| special journal | A journal used to record only one kind of transaction. |
| double-entry accounting | The recording of debit and credit parts of a transaction. |
| account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| ledger | A group of accounts. |
| general ledger | A ledger that contains all accounts needed to prepare financial statements. |
| subsidiary ledger | A ledger that is summarized in a single general ledger account. |
| controlling account | An account in a general ledger that summarizes all accounts in a subsidiary ledger |
| file maintenance | The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. |
| departmental accounting system | An accounting asystem showing accounting information for two or more departments |
| merchandising business | A business that purchases and sells goods. |
| posting | Trnasferring information from a journal entry to a ledger account. |
| debit memorandum | A form prepared by the customer showing the price deduction taken by a customer for returns and allowances. |
| contra account | An account that reduces a related account on a financial statement. |
| contra balance | An account balance that is opposite the normal balance |
| cash discount | A deduction that a vendor allows on an invoice amount to encourage prompt payment. |
| purchases discount | A cash discount on purchases taken by a customer |
| petty cash | An amount of cash kept on hand and used for making small payments. |
| bank statement | A report of deposits, withdrawals, and bank balance sent to a depositor by a bank. |
