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Provided Below Is a List of Definitions and Terms

Question 221

Matching

Provided below is a list of definitions and terms. Match the term with defenition

Premises:

Responses:

Journal

The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.

Debit

The difference between total debits and total credits for an account including the beginning balance.

Debt ratio

A chronological record of each transaction in one place that shows debits and credits for each transaction.

Credit

An account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.

Balance column account

A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.

Ledger

A written promise to pay a definite sum of money on a specified future date.

Account balance

A list of all accounts used by a company and the identification number assigned to each account.

Chart of accounts

A decrease in an asset and expense account, and an increase in a liability, contributed capital, retained earnings, and revenue account; recorded on the right side of a T-account.

Trial balance

An increase in an asset, dividend, and expense account, and a decrease in a liability, contributed capital, retained earnings, and revenue account; recorded on the left side of a T-account.

Note payable

A record containing all accounts of a company and their balances.