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| Difference between total debit and total credit amounts in an account |
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| A journal in which a transaction is first recorded |
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| List of all ledger accounts and their corresponding account numbers |
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| Entries that transfer the balances in the temporary accounts (Revenue, Expenses and Dividends) to the permanent account (Retained Earnings) |
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| Entry on the right side of an account; increases liability and equity or decreases asset accounts |
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| Entry on the left side of an account; increases asset accounts or decreases liability and equity accounts |
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| Financial measure of a company's level of risk, calculated as total debt divided by total assets |
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| Recordkeeping system that provides checks and balances by recording two sides for every transactions |
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| Principal of increasing earnings through debt financing by investing money at a higher rate than the rate paid on the borrowed money |
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| The annual time period for which a company provides financial statements |
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| Book of original entry in which any accounting transaction could be recorded, through commonly limited to adjusting and closing entries and unusual transactions |
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| The set of all accounts used in given accounting system, typically organized in financial statement order |
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Definition
| Book (or electronic record) of original entry in which accounting data are entered chronologically before posting to the ledger accounts |
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| The process of copying the dollar amounts of each debit and credit and into the ledger, after the transactions are initially recorded into a journal |
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| The relationship between the level of income and the size of the investment |
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Definition
The relationship between net income and stockholders' equity; expresses as Net income divided by stockholder's equity
(Net Income/Stockholders Equity) |
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| Record such as a cash register tape, invoice, time card, or check stub that provides accounting information to be recorded in the accounting journal ledgers |
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Definition
| Journals designed to improve recording efficiency for specific routine, high-volume transactions such as credit sales |
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Term
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Definition
| Simple account representation, using two bars arranged in the form of the letter "T"; the account title is written across the top on the horizontal bar, debit entries are recorded on the left side of the vertical bar, and credit entries on the right side of the bar |
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Term
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Definition
| Schedule listing the balances of all ledger accounts; verifies mathematical accuracy of the accounting records and provides a convenient reference of current account balances |
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