Accounting Equation II
The cost of goods or services used to operate a business.
Expense
An accounting device used to analyze transactions.
T Account
A form for recording transactions in chronological order.
Journal
A business form ordering a bank to pay cash from a bank account.
Check
A sale for which payment will be received at a later date.
Sale on Account
An amount recorded on the left side of an account.
Debit
Recording transactions in a journal.
Journalizing
A form describing the goods or services sold, the quantity, the price, and terms of the sale.
Invoice
Assets taken from the business for the owner's personal use.
Withdrawals
An amount recorded on the right side of an account.
Credit
A business paper from which information is obtained for a journal entry.
Source Document
An invoice used as a source document for recording a sale on account.
Sales Invoice
Amounts to be paid in the future for goods or services already acquired.
Accounts Payable
The side of the account that is increased.
Normal Balance
Information for each transaction recorded in a journal.
Entry
A business form giving written acknowledgement for cash received.
Receipt
Amounts to be received in the future due to the sale of goods or services.
Accounts Receivable
A list of accounts used by a business.
Chart of Accounts
The recording of debit and credit parts of a transaction.
Double-Entry Accounting
A form on which a brief message is written to describe a transaction.
Memorandum