Chapter2Glossary - Chapter 2 Key Terms AC114 Accounting I...

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Chapter 2 Key Terms – AC114 Accounting I account An accounting form that is used to record the increases and decreases in each financial statement item. account receivable A claim against the customer created by selling merchandise or services on credit. assets The resources owned by a business. balance of the account The amount of the difference between the debits and the credits that have been entered into an account. capital account An account used for a proprietorship that represents the owner's equity. chart of accounts A list of the accounts in the ledger. correcting journal entry An entry that is prepared when an error has already been journalized and posted. credits Amounts entered on the right side of an account. debits Amounts entered on the left side of an account. double-entry accounting system A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits. drawing
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Chapter2Glossary - Chapter 2 Key Terms AC114 Accounting I...

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