Term
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Definition
| An accounting form that is used to record the increases and decreases in each financial statement item |
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Term
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Definition
| A claim against the customer created by selling merchandise or services on credit |
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Definition
| The resources owned by a business |
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Definition
| The amount of the difference between the debits and the credits that have been entered into an account |
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Term
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Definition
| A list of the accounts in the ledger |
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Term
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Definition
| An entry that is prepared when an error has already been journalized and posted |
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Term
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Definition
| Amount entered on the right side of an account |
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Term
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Definition
| Amount entered on the left side of an account |
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Term
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Definition
| Distribution of a corporation’s earning to stockholders |
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Term
| double-entry accounting system |
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Definition
| A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits |
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Term
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Definition
| Assets used up or services consumed in the process of generating revenues |
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Term
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Definition
| Financial analysis that compares an item in a current statement with the same item in prior statements |
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Term
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Definition
| The initial record in which the effects of a transaction are recorded |
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Term
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Definition
| The form of recording a transaction in a journal |
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Term
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Definition
| The process of recording a transaction in the journal |
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Term
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Definition
| A group of accounts for a business |
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Term
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Definition
| The rights of creditors that represent debts of the business |
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Term
| normal balance of an account |
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Definition
| The normal balance of an account can be either a debit or a credit depending on whether increases in the account are recorded as debits or credits |
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Term
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Definition
| The process of transferring the debits and credits from the journal entries to the accounts |
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Term
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Definition
| Increase in owner’s equity as a result of selling services or products to customers |
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Term
| rules of debit and credit |
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Definition
| In the double-entry accounting system, specific rules for recording debits and credits based on the type of account |
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Term
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Definition
| An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00 |
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Term
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Definition
| The owners’ equity in a corporation |
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Term
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Definition
| The simplest form of an account |
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Term
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Definition
| An error in which the order of the digits is changed, such as writing $542 as $452 or $524 |
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Term
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Definition
| A summary listing of the titles and balances of accounts in the ledger |
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Term
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Definition
| A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries |
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Term
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Definition
| The liability created by receiving revenue in advance |
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