Create an account
Balance of the account
The amount of the difference between the debits and the credits that have been entered into an account.
Double-entry accounting system
A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits.
Rules of debit and credit
In the double-entry accounting system, specific rules for recording debits and credits based on the type of account.
Normal balance of an account
The normal balance of an account can be either a debit or a credit depending on whether increases in the account are recorded as debits or credits.
Unadjusted trial balance
A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.
An error in which the order of the digits is changed, such as writing $542 as $452 or $524.
An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.
Correcting journal entry
An entry that is prepared when an error has already been journalized and posted.
Financial analysis that compares an item in a current statement with the same item in prior statements.
The process of transferring the debits and credits from the journal entries to the accounts.
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