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16 Cards in this Set
- Front
- Back
account balance |
The difference between the amounts recorded on the two sides of an account |
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Accounts |
Written records of the assets, liabilities and owner's equity of a business |
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Charts of accounts |
A list of the accounts used by a business to record its financial transactions |
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Classification |
A means of identifying each account as an asset, liability or owner's equity |
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Credit |
an entry on the right side of an account |
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Debit |
An entry on the left side of the an account |
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Double entry system |
An accounting system that involves recording the effects of each transaction as debits and credits |
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Drawing account |
A special type of owner's equity account set up to record the owner's withdrawal of cash from the business |
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Footing
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A small pencil figure written at the base of an amount column showing the sum of the entries in the column |
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Normal balance |
The increase side of an account |
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Permanent account |
An account that is kept open from one accounting period to the next |
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slide |
An accounting error involving a misplaced decimal point |
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T account |
A type of account, resembling a T used to analyze the effects of a business transaction |
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Temporary account |
An account whose balance is transferred to another account at the account at the end of an accounting period |
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Transposition |
An accounting error involving misplaced digits in a number |
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Trial balance |
A statement to the test the accuracy of total debits and credits after transactions have been recorded |