Accounting Basics

Front

Double entry accounting

Back

A system in which each transaction has a dual effect on the accounting elements.

Front

Footings

Back

The total dollar amounts on the debit and credit sides of an account.

Front

Balance

Back

To enter an amount on the left side of an account.

Front

Debit

Back

The difference between the footings of an account.

Front

Credit

Back

To enter an amount on the right side of an account.

Front

Normal balance

Back

The side of an account that is increased.

Front

Debit balances

Back

The normal balance of asset, expense, and drawing accounts.

Front

Credit balances

Back

The normal balance of liability, owner's equity, and revenue accounts.

Front

Trial balance

Back

A list of all accounts, showing the title and balance of each account, used to prove that the sum of the debits equals the sum of the credits.