Accounting Vocab 1-3

Any business activity that changes assets, liabilities or owner's equity

• sale on account
• creditor
• transactions
• accounting system

A form on which a brief message is written to describe a transaction

• general journal
• ledger
• Check
• Memorandum

Anything of value that is owned

• sale on account
• asset
• liability
• equity

A business paper from which information is obtained for a journal entry

• source document
• ledger
• sales invoice
• reciept

The differences between the increases and decreases in an account.

• debit
• credit
• account balance
• equity

Assets taken from the business for the owner's personal use.

• capital
• drawing
• withdrawals 
• accounts payable

Normal side of an account that is increased.

• right side
• left side
• normal balance
• owner's capital

The difference between personal assets and personal liabilities is called personal net worth.

• personal net worth
• net worth statement
• balance sheet statement
• owner's capital

A person or business any liability is owed

• liability
• asset
• creditor
• the bank

The recording of debit and credit parts of a transaction

• double entry accounting
• GAAP
• Accepted Accounting Practices
• journalizing