Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense. account balance the difference between the total debits and the total credits in an account balance column account

The normal balance side of any expense account is the
A) debit side
B) credit side
C) right side
D) none of these

A

The normal balance side of an owner’s drawing account is the 
A) debit side
B) credit side
C) right side
D) none of these

account

Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense.

account balance

the difference between the total debits and the total credits in an account

balance column account

Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.

chart of accounts

List of accounts used by a company; includes an identification number for each account.

compound journal entry

Journal entry that affects at least three accounts.

credit

recorded on the right side, an entry that decreases an asset or expense account or increases a liability, revenue or equity

Creditors

Individuals or organizations entitled to receive payments.

debit

Left side of an account. Indicates an increase to asset, expense, or dividend accounts, and a decrease to liability, stockholders’ equity, or revenue accounts.

debt ratio

Ratio of total liabilities to total assets; used to reflect risk associated with a company’s debts.

debtors

Individuals or organizations that owe money.

double-entry accounting

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