Ledger Accounts
A group or file of accounts
What is a ledger?
The word associated with the left side of an account.
What is debit?
gives the dollar value of an account and show whether it is a debit or credit value
What is an account balance?
A listing of the account balances in a ledger
What is a trial balance?
A record that documents each change to items in the accounting equation.
What is an account?
The word associated with the right side of an account.
What is credit?
When an item is purchased on credit, this means that it is not paid for at the time of purchase
What is purchase on account?
If Debit and the Credit sides don't equal one another
What is it to be out of balance?
used to sort, store and summarize a company's transactions.
What is the use of a ledger?
When recording transactions, credits are recorded first and then the debits.
True or False
when money is received from a debtor to reduce the amount owed
what is receipt on account?
When debit and credit sides are equal
What is in balance?
Assets, Liabilities, Owners equity, Revenue, Expenses
What are the 5 divisions of a ledger?
When every transaction is recorded in two steps.
What is double entry system?
the totals of the debit and credit side of an account
what are pin totals?
Who- name of individual or business
What- trial balance
When- date
What is the heading of a trial balance>
The equation that helps set up the accounts in their proper spot
What is A=L+OE
When an account usually has a debit balance but ends up with a credit balance
what is an exceptional balance?
Allows a bank account balance to go below zero
What is overdraft protection?
used to see if the dollar value of the accounts with debit balances is equal to the dollar value of the accounts with credit balances
what is the use of a trial balance?