Account- Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense. Account balance- Difference between total debits and total credits (including the beginning balance) for an account. Balance column account- Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry. Chart of accounts- List of accounts used by a company; includes an identification number for each account. Compound journal entry- Journal entry that affects at least three accounts. Credit- Recorded on the right side; an entry that decreases asset and expense accounts, and increases liability, revenue, and most equity accounts; abbreviated Cr. Creditors- Individuals or organizations entitled to receive payments. Debit- Recorded on the left side; an entry that increases asset and expense accounts, and decreases liability, revenue, and most equity accounts; abbreviated Dr. Debt ratio- Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
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