ACCT 2101 Chapter 2 Vocabulary Flashcards

Vocabulary flashcards covering core concepts, source documents, accounts, financial statements, and ledger definitions from ACCT 2101 Chapter 2.

Source Documents

Documents that identify and describe transactions entering the accounting system, such as bills from suppliers, sales receipts, checks, purchase orders, payroll records, and bank statements.

Account

A record of increases and decreases in a specific asset, liability, equity, revenue, or expense.

General Ledger

A record or collection of all accounts and their balances for an accounting system.

Chart of Accounts

A list of all accounts in an accounting system that includes an identifying number for each account.

T-Account

A visual representation of a ledger account used to show the effects of transactions.

Account Balance

The difference between the increases and decreases in an account.

Balance Column Account

An account format used in practice to keep a running balance of an account after each transaction.

Trial Balance

A report listing all ledger accounts and their balances at a point in time, used to verify that total debit balances equal total credit balances.

Income Statement

A financial statement that reports revenues less expenses incurred by a business over a period of time.

Statement of Retained Earnings

A financial statement that reports changes in equity over the reporting period from net income (or loss) and from any dividends over a period of time.

Balance Sheet

A financial statement that reports the financial position (types and amounts of assets, liabilities, and equity) of a business at a point in time.

Statement of Cash Flows

A financial statement that lists the cash inflows and cash outflows for the period.