Accounting Part 1 Review

A list of accounts used by a business.

• chart of accounts

• accounting system

• accrual basis of accounting

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

• chart of accounts

• accounting system

• accrual basis of accounting

Reporting income when earned and expenses when incurred.

• chart of accounts

• accounting system

• accrual basis of accounting

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

• balance sheet

• income statement

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

• balance sheet

• income statement

A person or business to whom a liability is owed.

• creditor

• revenue

• expense

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

• creditor

• revenue

• expense

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

• creditor

• revenue

• expense

Transferring information from a journal entry to a ledger account.

• posting

• trial balance

• t-account

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

• posting

• trial balance

• t-account