An entry made on the normal balance side of an account is always an increase to the account's balance.

Accounts used to accumulate information until it is transferred (closed) to the owner's capital account are called temporary or nominal accounts.

A business from which merchandise is purchased, or supplies or other assets are bought, is called a vendor or supplier.

The Income Summary account is a temporary account used to summarize the closing entries.

Normally, Total Assets are equal to the difference between total revenue and total expenses.

To properly record a transaction in a journal, the accounts to debit and credit must be determined.

The general journal is normally used to initially record all business transactions.

An owner of one or more shares of a corporation is known as a partner.

The owner's capital account is on the right side of the accounting equation and has a normal credit balance.

A debit to an account always increases the account's balance.

The total amount earned by employees for a pay period is called gross pay.

Earnings paid to stockholders are called dividends.

An example of a long-term liability is Accounts Receivable.

A business paid cash to a supplier on account. This transaction is recorded by crediting cash and debiting accounts receivable.

All journal entry amounts are summarized or individually posted to the general ledger.

Petty Cash is a special "cash fund" established for paying for small expenditures.

Sales tax payable is an asset account.

The Trial Balance is used as an aid for preparing the formal financial statements.

A business owned by one person is called a corporation.

When services are sold on account, accounts payable is debited and sales are credited.