Principles of Accounts (POA) Fundamentals

A set of vocabulary flashcards covering the basic structure of T-accounts, trial balances, and introductory transaction examples from the POA lecture notes.

POA

An abbreviation for Principles of Accounts.

T account

A ledger format that must include a heading, date, details, folio, and amount.

Trial balance

A list of all accounts used to ensure that total debits equal total credits.

Debit

The side of a T account located on the left side.

Credit

The side of a T account located on the right side.

Capital

The amount used to start a business, such as the recorded value of $\$15,000$ on 1/3/17.

Cash account

An asset account that is debited when business starts with capital, such as the $\$15,000$ entry on 1/3/17.

Purchase account

An account used to record goods bought, such as the $\$529$ debit entry on 2/3/17 for goods bought on credit.

J. Paul

The creditor from whom goods worth $\$529$ were purchased on credit on 2/3/17.

Asset

A category of accounts representing resources, which includes the Cash account according to the ledger labels.