Category 1
Any business activity that changes assets, liabilities, or owner's equity.
Transaction
An amount recorded on the left side of an account.
Debit
An amount recorded on the right side of an account.
Credit
A formal for recording transactions in chronological order
Journal
Information for each transaction recorded in a journal.
Journalizing
The difference between increases and decreases in an account.
Account Balance
The costs of goods or services used to operate a business.
Expense
The name given to an account.
Account title
The recording of debit and credit parts of a transaction.
Journalizing
A business form ordering a bank to pay cash from a bank account.
Check
An account used to summarize the owner's equity in a business.
Capital Account
Assets taken from the business for the owner's personal use.
Withdrawals
A record that summarizes all the transactions pertaining to a single item in the accounting equation.
Account
A business paper from which information is obtained for a journal entry
Source document
Financial rights to the assets of a business.
Equities
The side of the account that has increased.
Normal balance
A sales for which payment will be received at a later date.
Sales on Account
Amounts to be paid in the future for goods or services already acquired.
Accounts Payable
A form describing the goods or services sold, the quantity, the price and the terms of the sale.
Invoice
A formal written document that describes the nature of a business and how it will operate.
Business plan
A list of accounts used by a business.
Chart of Accounts
An account device used to analyze transactions.
T-accounts
amounts to be received in the future due to the sale of goods or services
Accounts Receivable
What is the accounting equation?
Assets = Liabilities + Owner's Equity
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