Financial Accounting Chapter 2 – Flashcards
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account
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the record of the changes that have occurred in a particular asset, liability, or stockholders' equity during a period. The basic summary device of accounting
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accrued liability
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a liability for an expense that has not yet been paid by the company
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cash
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money and any medium of exchange that a bank accepts at face value
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chart of accounts
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list of a company's accounts and their account numbers
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credit
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the right side of an account
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debit
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the left side of an account
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journal
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the chronological accounting record of an entity's transaactions
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ledger
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the book of accounts and their balances
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posting
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copying amounts from the journal to the ledger
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transaction
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any event that has a financial impact on the busines and can be measured reliably
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trial balance
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a list of all the ledger accounts with their balances
