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Chapter 4 accounting
Term | Definition |
---|---|
chart of accounts | a list of all accounts used by a business |
ledger | a group of accounts; also referred to as a general ledger |
double-entry accounting | a system that recognizes the different sides of business transactions as debits and credits |
debit | an entry on the left side of an account |
credit | an agreement to pay for a purchase at a later time; an entry on the right side of an account |
T accounting | a visual representation of a ledger account. The T account is a tool used to analyze transactions |
normal balance | the increase side of an account. The word normal here means usual |