Adv. Acct Ch. 1 Terms

Anything of value that is owned

• Asset

• Liability

• Equity

• Controlling account

An amount owed by a business

• Asset

• Liability

• Equity

• Controlling account

The amount remaining after the value of all liabilities is subtracted from the value of assets

• Asset

• Liability

• Owner's Equity

• Controlling account

Business papers from which information is obtained for a new journal entry

• Special journals

• Source documents

• Subsidiary ledgers

• Double entry accounting

The recording of debit and credit parts of a transaction

• Special journals

• Source documents

• Subsidiary ledgers

• Double entry accounting

A record that summarizes all the information pertaining to a single item in the accounting equation

• Account

• Ledger

• Source doc

• Double entry accounting

A group of accounts is known as

• Cash payments journals

• Ledger

• Source doc

• Double entry accounting

A form for recording transactions in chronological order

• Liability

• Ledger

• Source doc

• Journal

Form prepared showing the price deduction taken for a return or allowance

• Check number

• Merchandising business

• Contra account

• Debit memorandum

A deduction that a vendor allows on the invoice amount to encourage prompt payment

• Petty cash

• Journal posting

• Cash discount

• Debit memorandum