Chapter 2 Vocab

Chapter 2 Vocab - equity accounts. 11) Journal: An...

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Chapter 2 Vocab 1) Account: A record of increases and decreases in specific asset, liability, or stockholders’ equity items. 2) Chart of Accounts: A list of accounts and the account numbers that identify their location in the ledger. 3) Common Stock: Issued in exchange for the owners’ investment paid in to the corporation. 4) Compound Entry: A journal entry that involves 3 or more accounts. 5) Credit: The right side of an account. 6) Debit: The left side of an account. 7) Dividend: A distribution by a corporation to its stockholders on a pro rata (equal) basis. 8) Double Entry System: A system that records in appropriate accounts the dual effect of each transaction. 9) General Journal: The most basic form of journal. 10) General Ledger: A ledger that contains all asset, liability, and stockholders’
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Unformatted text preview: equity accounts. 11) Journal: An accounting record in which transactions are initially recorded in chronological order. 12) Journalizing: The entering of transaction data in the journal. 13) Ledger: The entire group of accounts maintained by a company. 14) Normal Balance: An account balance on the side where an increase in the account is recorded. 15) Posting: The transfer of journal entries to ledger accounts. 16) Retained Earnings: Net income that is kept (retained) in the business. 17) Simple Entry: A journal entry that involves only 2 accounts. 18) T Account: The basic form of an account. 19) 3 Column Form of Account: A form with columns for debit, credit, and balance amounts in an account. 20) Trial Balance: A list of accounts and their balances at a given time....
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