Accounting chap 3 vocab

Accounting chap 3 - Debit – an entry on the left side of an account Credit – an entry on the right side of an account Double-entry system – a

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Chap 3 Event – a happening of consequence to an entity External event – an event involving interaction between an entity and its environment Internal event – an event occurring entirely within an entity Transaction – any event that is recognized in a set of financial statements Source Document – a piece of paper that is used as evidence to record a transaction Account – record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of owners’ equity Chart of accounts – a numerical list of all the accounts used by a company General ledger – a book, file, hard drive, or other device containing all the accounts
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Unformatted text preview: Debit – an entry on the left side of an account Credit – an entry on the right side of an account Double-entry system – a system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance Journal – a chronological record of transactions Posting – the process of transferring amounts from a journal to the ledger accounts Journalizing – the act of recording journal entries General journal – the journal used in place of a specialized journal Trial balance – a list of each account and its balance; used to prove equality of debits and credits...
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This note was uploaded on 04/09/2008 for the course ACC ? taught by Professor Tanzola during the Fall '08 term at Saint Joseph's University.

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