Accounting Ch3 Vocab

Front

Account balance

Back

The difference between the amounts recorded on the two sides of an account

Front

Accounts

Back

Written records of the assets, liabilities, and owner's equity of a business

Front

Chart of accounts

Back

A list of the accounts used by a business to record its financial transactions

Front

Classification

Back

A means of identifying each account as an asset, liability, or owner's equity

Front

Credit

Back

An entry on the right side of an account

Front

Debit

Back

An entry on the left side of an account

Front

Double-entry system

Back

An accounting system that involves recording the effects of each transaction as debits and credits

Front

Drawing account

Back

A special type of owner's equity account set up to record the owner's withdrawal of cash from the business

Front

Footing

Back

A small pencil figure written at the base of an amount column showing the sum of the entries in the column

Front

Normal balance

Back

The increase side of an account