Category 1
Category 2
Category 3
Category 4
100
This record keeps track of the increases and decreases in financial statement items
WHAT IS AN ACCOUNT
100
The record that groups all the accounts together
WHAT IS THE LEDGER
100
The left side of an account
WHAT IS THE DEBIT SIDE
100
Money taken from the business by the owner for personal use
WHAT IS A WITHDRAWAL OR DRAWING
200
The right side of an account
WHAT IS THE CREDIT SIDE
200
All asset accounts normally have this balance
WHAT IS A DEBIT
200
All liability accounts normally have this balance
WHAT IS A CREDIT
200
The schedule that lists the accounts and their balances and shows that the debits equal the credits at a specific time
WHAT IS THE TRIAL BALANCE
300
The normal balance of the owner’s capital account
WHAT IS A CREDIT
300
The accounting equation
WHAT IS ASSETS = LIABILITIES + EQUITY
300
Increases in cash are recorded by these
WHAT ARE DEBITS
300
The increase in owner’s equity resulting from profitable operations
WHAT IS PROFIT?
400
Every transaction is recorded by these
WHAT ARE EQUAL AMOUNTS OF DEBITS & CREDITS
400
Increases in Accounts Payable are recorded by these
WHAT ARE CREDITS
400
This system needs both equal debit and credit entries
WHAT IS DOUBLE-ENTRY ACCOUNTING
400
A journal entry that affects three or more accounts
WHAT IS A COMPOUND ENTRY?
500
This is a chronological record of business transactions
WHAT IS A JOURNAL
500
This process transfers transactions from the journal entries to the ledger
WHAT IS POSTING
500
These two owner’s equity accounts normally have debit balances
WHAT ARE DRAWINGS AND EXPENSES
500
Every company has this type of basic journal
WHAT IS THE GENERAL JOURNAL
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