Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 33

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–15). Note that not all key terms and concepts will be used.

a. Balance sheet equation	h. Account
b. Transactions	i. Chart of accounts
c. On account	j. T-account
d. Accrued (or accrual)	k. Account balance
e. Journal	l. Debit
f. Post (posting)	m. Credit
g. Ledger	n. Entry
o. Balance	s. Adjusting journal entry
p. Charge	t. Closing the books
q. Journal entry	u. Transaction analysis methodology
r. Source document

____________ Assets = Liabilities + Owners’ Equity (A = L + OE) expresses the fundamental structure of the balance sheet and is the basis of bookkeeping procedures.

Step 1 of 2

Balance Sheet:

It can be defined as a statement that provides the summary of the Assets, Liabilities and the Owner’s equity in an organization on a particular date.  It contains all the closing balances of all the accounts that will be represented on the assets and liabilities side.

Accounting Equation

It is an equation that represents the sum total of assets which is equal to the sum of liabilities and shareholder’s equity of the entity. The accounting equation is represented by the equation as shown below.