TCC Accounting Chapter 2
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Created by:
gsmiley1576 on June 7, 2012
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Description:
Recording business transactions.
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15 terms
Terms | Definitions |
|---|---|
 Account | The detailed record of the changes in a particular asset, liability, or owner's equity during a period. The basic summary device of accounting. |
| Accrued Liability | A liability for which the business knows the amount owed but the bill has not been paid. |
| Chart of Accounts | A list of all the accounts with their account numbers. |
| Compound journal entry | Same as a journal entry, except this entry is characterized by having multiple debits and/or multiple credits. The total debits still equal the total credits in the compound journal. |
| Credit | The right side of an account. |
| Debit | The left side of an account. |
| Journal | The chronological accounting record of an entity's transactions. |
| Ledger | The record holding all the accounts. |
| Normal Balance | The balance that appears on the side of an account - debit or credit - where we record increases. |
| Notes Payable | Represents debts the business owes because it signed promissory notes to borrow money to purchase something. |
| Note Receivable | A written promise for future collection of cash. |
| Posting | Copying amounts from the journal to the ledger. |
| Prepaid expenses | Expenses paid in advance for their use. |
| T-account | Summary device that is shaped like a capital "T" with debits posted on the left side of the vertical line and credits on the right side. |
| Trial Balance | A list of all the accounts with their balances. |
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