grade11

• Accounting cycle - a continuous process of accumulating, summarizing, and reporting financial ino
• Trial balance - A listing of all ledger accounts with their balances to test equality of debits and credits, prepared at the end of the accounting period before the financial statements are prepared
• Cr. - abbreviation of credit
• Dr. - abbreviation of debit
• Particular - account title and explanation
• Ledger - Also called the BOOK OF FINAL ENTRY because all the balances in here are used in the preparation of financial statements
• Open balance - amount of money still owed or unpaid from a previous period
• Credit - amount of value given away
• Debit - amount of value received
• Sales on account journal - another term for sales journal
• Purchase on account journal - another term form purchase journal
• Credit - asset decrease
• debit - asset increase
• Debit - asset normal balance
• Journal - Book of original entry
• Credit - came from the latin word credere
• Debit - came from the lati word debere
• Credits accounts payable - this column represents the amount of the goods or items purchased on credit from THE SUPPLIER
• Book of accounts - comprise every single business transaction and financial info
• Credit - contra asset account normal balance
• Subsidiary ledger - created or maintained if individualized data is needed for a specific general account
• Journalizing process - entering transaction data in the journal
• Compounded entry - entry that requires 3 or more accounts
• Credit - equity or capital increase
• Debit - expense increase
• Debit - expenses normal balance
• Book of accounts - Financial records, ledgers, and journals that compose the company's accounts
• Account number - in the general ledger, this is assigned number for each account title to facilitate ease in recording and cross referencing
• Balance column - represents the running balance of the accounts after considering the debit and credit amounts
• Item - in the general journal, this represents the source journal and the nature of the transaction
• Debit and credit columns - in the general ledger, this is used in recording the amount of transaction from the general journal or special journal
• Account portion - in the general ledger, this refers to the account title
• Service business - generates income by providing services instead of selling physical products
• Subsidiary ledger -group of accounts that contains the independent data of a specific ledger
• Simple entry - Has 2 accounts only
• General journal - has significant contributions to recording process
• Journal - This shows the debit and credit effects on specific accounts
• Out balance - The total debit is not equal to the total credit
• Credit - Income/ Revenue increases
• General ledger - a grouping of all accounts used in the preparation of financial statements