Chapter 2 Terms account The form used to record additions and deductions for each individual asset, liability, owner's equity, revenue, and expenses. Assets Resources that are owned by the business. Balance of the account The amount of difference between the debits and the credits that have been entered into an account. Chart of accounts The system of accounts that make up the ledger for a business. Credit (1) the right side of an account; (s) the amount entered on the right side of an account; (3) to enter an amount on the right side of an account. Debit (1) The left side of an account; (2) the amount entered on the left side of an account; (3) to enter an amount on the left side of an account. Double-entry accounting A system for recording transactions, based on recording increases and decreases in accounts so the debuts always equal credits. Drawing The account used to record amounts withdrawn by an owner of a proprietorship. Expenses
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