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| The arithmetic sum of the additions and subtractions To an account through a given date. |
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Term
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| The process of recognizing revenue that has been earned but not collected, or an expense that has been incurred but not paid. |
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| Describes revenue that has been earned and a related asset that will be collected, or an expense that has been incurred and a related liability that will be paid. |
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| An entry usually made during the process of “closing the books” that results in more accurate financial statements. Adjustments involve accruals and reclassifications. Adjustments are sometimes made at the end of interim periods, such as month-end or quarter-end, as well. |
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| In a bookkeeping system, a synonym for debt. |
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| An index of the accounts contained in a ledger. |
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| The process of posting transactions, adjustments, and closing entries to the ledger and preparing the financial statements. |
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| The right side of an account. A decrease in asset and expense accounts; an increase in liability, owners' equity, and revenue accounts. |
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| The left side of an account. An increase in asset and expense accounts; a decrease in liability, owners' equity, and revenue accounts. |
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Definition
| A journal entry or a posting to an account. |
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Definition
| A representation of the balance sheet and income statement relationship that is useful for understanding the effects of transactions and adjustments on the financial statements. The model is: |
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Definition
| A chronological record of transactions. |
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| A description on a transaction in a format that shows the debit account(s) and amount(s) and credit account(s) and amount(s). |
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| A book or file of accounts. |
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| Used to describe a purchase or sale transaction for which cash will be paid or received at a later date. A "credit" transaction. |
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Term
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Definition
| The process of recording a transaction in the respective ledger accounts using a journal entry as the source of the information recorded. |
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Definition
| Evidence of a transaction that supports the journal entry recording the transaction. |
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Term
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Definition
| An account format with a debit (left) side and a credit (right) side. |
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Term
| transaction analysis methodolo |
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Definition
| The process of answering five questions to ensure that a transaction is understood: 1. What's going on? 2. What accounts are affected? 3. How are they affected? 4. Does the balance sheet balance? (Do the debits equal the credits?) 5. Does my analysis make sense? |
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Term
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Definition
| Economic interchanges between entities that are accounted for and reflected in financial statements. |
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