ACC 240 Lecture 4: ACC 240 class notes part 4
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Assets
Probablefuture economic benefits owned by the business as a result of past transactions.
Chart of Accounts
A summary of all account names and corespondent account numbers used to record financial results in
the accounting system.
Classified Balance Sheet
A balance sheet that classifies assets and liabilities into current and other (long-term) categories.
Cost Principal
Requires assets to be recorded at the historical cash-equivalent cost, which is the amount paid or
payable on the date of the transaction.
Current Assets
Assets that will be used up or turned into cash within 12 months or the next operating cycle, whichever
is longer.
Current Liabilities
Short-term obligations that will be paid in cash (or fulfilled with other current assets) within 12 months
or the next operating cycle, whichever comes first.
Debit
When used as a noun, debit is the left side of the account; when used as a verb, debit is the act of
recording the debit portion of a journal entry to a particular account.
Journal
A record of each days transactions.
Journal Entry
An accounting method for expressing the effects of a transaction on accounts in a debits-equal-credits
format.
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Document Summary
Probablefuture economic benefits owned by the business as a result of past transactions. A summary of all account names and corespondent account numbers used to record financial results in the accounting system. A balance sheet that classifies assets and liabilities into current and other (long-term) categories. Requires assets to be recorded at the historical cash-equivalent cost, which is the amount paid or payable on the date of the transaction. Assets that will be used up or turned into cash within 12 months or the next operating cycle, whichever is longer. Short-term obligations that will be paid in cash (or fulfilled with other current assets) within 12 months or the next operating cycle, whichever comes first. When used as a noun, debit is the left side of the account; when used as a verb, debit is the act of recording the debit portion of a journal entry to a particular account.