| A | B |
|---|
| chart of accounts | a list of accounts used by a business |
| credit | an amount recorded on the right side of a T account |
| debit | an amount recorded on the left side of a T account |
| normal balance | the side of the account that is increased |
| asset | anything of value that is owned |
| 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 | an equation showing the relationship among assets, liabilities, and owner’s equity |
| transaction | a business activity that changes assets, liabilities, or owner’s equity |
| withdrawals | assets taken out of a business for the owner’s personal use |
| sale on account | a sale for which cash will be received at a later date |
| accounting | planning, recording, analyzing, and interpreting financial information |
| expense | a decrease in owner’s equity resulting from the operation of a business |
| check | a business form ordering a bank to pay cash from a bank account |
| double-entry accounting | the recording of debit and credit parts of a transaction |
| entry | information for each transaction recorded in a journal |
| general amount column | a journal amount column that is not headed with an account title |
| invoice | a form describing the goods or services sold, the quantity, and the price |
| journal | a form for recording transactions in chronological order |
| journalizing | recording transactions in a journal |
| memorandum | a form on which a brief message is written describing a transaction |
| proving cash | determining that the amount of cash agrees with the accounting records |
| receipt | a business form giving written acknowledgement for cash received |
| sales invoice | an invoice used as a source document for recording a sale on account |
| source document | a business paper from which information is obtained for a journal entry |
| special amount column | a journal amount column headed with an account title |
