Accounting 1: Chapter 2


a record of increases and decreases in specific asset, liability, or owner's equity items

Chart of Accounts

a list of accounts and the account numbers that identify their location in the ledger

Compound Entry

a journal entry that involves three or more accounts


the right side of an account


the left side of an account

Double-Entry System

a system that records in appropriate accounts the dual effect of each transaction

General Journal

the most basic form of journal

General Ledger

a ledger that contains all asset, liability, and owner's equity accounts


an accounting record in which transactions are initially recorded in chronological order


the entering of transaction data in the journal


the entire group of accounts maintained by a company

Normal Balance

an account balance on the side where an increase in the account is recorded


the procedure of transferring journal entries to the ledger accounts

Simple Entry

a journal entry that involves only two accounts

T Account

the basic form of an account

Three-Column Form of Account

a form with columns for debit, credit, and balance amounts in an account

Trail Balance

a list of accounts and their balances at a given time