Difference between total debits and total credits (including the beginning balance) for an account.

Journal entry that affects at least three accounts.

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

An entry that decreases asset and expense accounts, and increases liability, revenue, and most equity accounts.

Individuals or organizations entitled to receive payments.

An entry that increases asset and expense accounts, and decreases liability, revenue, and most equity accounts.

Ratio of liabilities to assets, used to assess debt risk.

System in which each transaction affects at least two accounts and has at least one debit and one credit.

Where transactions are entered as deibts and credits before being posted to relevant accounts.

Record containing all accounts (with amounts) for a business

For journal entries, the debit should be entered on the first line.

Debits are recorded on the left-hand side of a T-account.

If equipment is purchased, the equipment account should be debited.

If equipment is purchased for cash, the cash account should be credited.

If equipment is purchased on credit, a credit entry should be entered for accounts payable.

If a customer pays off the balance of what they owe, accounts receivable should be credited.

If revenue is earned, a credit entry should be made in the appropriate revenue account.

If expenses are incurred, a debit entry should be recorded in the appropriate expense account.

All of the following are asset accounts: cash, accounts receivable, supplies, inventory, and equipment.

Even if a firm has more debt than equity, their debits and credits for each period should equal each other.

For journal entries, the credit should be entered on the first line.

Debits are recorded on the right-hand side of a T-account.

If equipment is purchased, the equipment account should be credited.

If equipment is purchased for cash, the cash account should be debited.

If equipment is purchased on credit, a credit entry should be entered for accounts receivable.

If a customer pays off the balance of what they owe, accounts receivable should be debited.

If revenue is earned, a debit entry should be made in the appropriate revenue account.

If expenses are incurred, a credit entry should be recorded in the appropriate expense account.

All of the following are asset accounts: cash, accounts payable, supplies, inventory, and equipment.

If a firm has more debt than equity, this implies the sum of their credits will be greater than the sum of their debits.