Accounting Part 1 Review

Front

A list of accounts used by a business.

Back

chart of accounts

Front

A planned process designed to compile financial data and summarize the results in accounting records and reports.

Back

accounting system

Front

Reporting income when earned and expenses when incurred.

Back

accrual basis of accounting

Front

A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

Back

balance sheet

Front

A financial statement showing the revenue and expenses for a fiscal period.

Back

income statement

Front

A person or business to whom a liability is owed.

Back

creditor

Front

An increase in equity resulting from the sale of goods or services

Back

revenue

Front

The cost of goods or services used to operate a business.

Back

expense

Front

Transferring information from a journal entry to a ledger account.

Back

posting

Front

A proof of the equality of debits and credits in a general ledger.

Back

trial balance