Accounting Terms Flashcards

Front

A financial event involving the exchange of goods, services, or money between two parties.

Back

Transaction

Front

A chronological record of all financial transactions before they are posted to the ledger.

Back

Journal

Front

A book or digital record containing all accounts where transactions from the journal are posted.

Back

Ledger

Front

An entry on the left side of an account that increases assets or expenses and decreases liabilities or equity.

Back

Debit

Front

An entry on the right side of an account that increases liabilities or equity and decreases assets or expenses.

Back

Credit

Front

The original document that provides evidence of a financial transaction (e.g., invoice, receipt).

Back

Source Document

Front

The primary journal used to record all types of financial transactions in chronological order.

Back

General Journal

Front

A document that records the cash received by a business.

Back

Cash Receipt

Front

A document that records payments made by a business in cash or equivalents.

Back

Cash Payment

Front

A structured list of all accounts used by a business to record financial transactions.

Back

Chart of Accounts