- C1 Account
- A record of increases and decreases in one specific asset, liability, equity, revenue, or expense.
- C1 Account balance
- The difference between an account’s total increases and total decreases.
- C1 Source documents
- The paper or electronic record — invoice, check, receipt — that identifies and describes a transaction.
- C1 Chart of accounts
- A list of every account a company uses, with an identifying number for each.
- C1 Ledger (general ledger)
- The record holding all of a company’s accounts and their balances.
- C1 T-account
- A simplified account form shaped like a T, used to show debits on the left and credits on the right.
- A1 Debit
- An entry on the left side of an account. Abbreviated Dr.
- A1 Credit
- An entry on the right side of an account. Abbreviated Cr.
- A1 Double-entry accounting
- Every transaction affects at least two accounts, and total debits always equal total credits.
- A1 Normal balance
- The side of an account — debit or credit — where increases are recorded.
- P1 Journal (general journal)
- The record where a transaction is first entered, in date order, before posting.
- P1 Journalizing
- The process of recording a transaction in a journal.
- P1 Posting
- Transferring journal entry information to the ledger accounts it affects.
- P1 Posting reference (PR) column
- A column in the journal and ledger that cross-references an entry to where it was posted.
- P1 Balance column account
- A ledger account format with debit, credit, and running-balance columns, used instead of a plain T-account.
- P1 Compound journal entry
- A journal entry with more than one debit or more than one credit line.
- P2 Trial balance
- A list of every account and its balance, used to check that total debits equal total credits.
- C1 Accounts receivable
- An asset representing amounts owed to a company by its customers.
- C1 Note receivable
- An asset representing a customer’s written promise to pay a definite sum on a future date.
- C1 Prepaid accounts
- Assets from paying in advance for products or services to be received later.
- C1 Supplies
- An asset representing goods a company owns for use in its operations.
- C1 Equipment
- An asset representing long-term tangible items used to produce or sell products and services.
- C1 Land
- An asset representing property a company owns, reported at its cost and not depreciated.
- C1 Accounts payable
- A liability representing amounts owed for products or services bought on credit.
- C1 Note payable
- A liability representing a company’s own written promise to pay a definite sum on a future date.
- C1 Unearned revenue
- A liability created when a customer pays in advance for products or services not yet delivered.
- C1 Accrued liabilities
- Amounts owed that are not yet paid, such as wages or taxes.
- C1 Common stock
- An equity account recording amounts received from investors in exchange for ownership shares.
- C1 Dividends
- Distributions of a corporation’s earnings to its shareholders; reduces equity.
- C1 Retained earnings
- The equity account accumulating a corporation’s earnings that have not been distributed as dividends.
- C1 Revenues
- The increase in equity from a company’s earning activities, such as selling products or services.
- C1 Expenses
- The cost of assets or services used to earn revenues; decreases equity.
- A2 Debt ratio
- Total liabilities divided by total assets; the portion of assets financed by creditors.