Accounting Chapter 2 terms

trial balance

a list of all accounts with their balances at a point in time

Journal

a record of transactions in date order

Compound Journal Entry

a journal entry that is characterized by having multiple debits and/or multiple credits

chart of accounts

a list of all accounts with their account numbers

Account

a detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period of time

Debit

left side of the t-chart

credit

right side of the t-chart

normal balance

side of an account when increases are recorded

Ledger

the record holding all the accounts of a business, the changes in those accounts, and there balances

posting

transferring amounts from the journal to the ledger