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College Accounting, Ch. 3: The Double-Entry Framework

Terms in this set (15)

balance
the difference between the footings of an account
credit
to enter an amount on the right side of an account
credit balance
the normal balance of a liability, owner's equity, and revenue accounts
debit
to enter an amount on the left side of an account
debit balance
the normal balance of an asset, expense, and drawing accounts
double-entry accounting
a system in which each transaction has a dual effect on the accounting elements
footings
the total dollar amounts on the debit and credit sides of an account
normal balance
the side of an account that is increased
trial balance
a list of all accounts, showing the title and balance of each account, used to prove that the sum of the debits = the sum of the credits
asset
1) debit +, credit -
liability
2) debit -, credit +
owner's capital
3) debit -, credit +
revenue
4) debit -, credit +
expense
5) debit +, credit -
drawing
6) debit +, credit -
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