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25 Cards in this Set

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Define balance.
the difference in dollars between the total debit footing and the total credit footing of an account. Also called account balance.
Define chart of accounts.
A scheme that assigns a unique number to each account to facilitate finding the account in the ledger; also, the list of account numbers and titles.
Define classification.
the process of assigning transactions to the appropriate accounts.
Define compound entry.
an entry that has more than one debit or credit entry.
Define cost.
the exchange price associated with a business transaction at the point of recognition.
Define cost principle.
the practice of recording transactions at cost.
Define credit.
the right side of an account.
Define debit.
the left side of an account.
What is the double-entry system?
the accounting system in which each transaction is recorded with at least one debit and one credit, so that the total dollar amount of debits and the total dollar amount of credits equal each other.
Define footings.
working totals of columns of numbers. to foot means to total a column of numbers.
Define journal.
the simplest and most flexible type of journal.
What is the general ledger?
the book or file that contains all of the company's accounts, arranged in the order of the chart of accounts. also called ledger.
Define journal.
a chronological record of all transactions; the place where transactions first enter the accounting records. also called book of original entry.
What is a journal entry?
journal notations that record a single transaction.
What is the journal form?
a form of journal in which the date, the debit account, and the debit amount of a transaction are recorded on one line and the credit account and credit amount on the next line.
Define journalizing.
the process of recording transactions in a journal.
Define ledger account form.
the form of account that has four dollar amount columns: one column for debit entries, one column for credit entries, and two columns (debit and credit) for showing the balance of the account.
Define normal balance.
the usual balance of an account; also the side (debit and credit) that increases the account.
Define posting.
the process of transferring journal entry information from the journal to the ledger.
Define recognition.
the determination of when a business transaction should be recorded.
Define recognition point.
the predetermined time at which a transaction should be recorded; usually, the point at which title passes to the buyer.
Define source document.
an invoice, check, receipt, or other document that supports a transaction.
define T account.
the simplest form of an account, used to analyze transactions.
Define trial balance.
a comparison of the total of debit and credit balances in the accounts to check that they are equal.
define valuation.
the process of assigning a monetary value to a business transaction.