The general ledger contains all the accounts needed to prepare financial statements.

A sale for which cash will be received at a later date is known as a sale on account.

Accounts receivable that cannot be collected are called write-offs.

One method of recording an estimate of the uncollectible accounts is to record an estimated amount to the contra asset account, Allowance for Bad Debts.

Liabilities due within a short time, usually one year, are called long term liabilities.

Expenses increase owner's equity.

A person or business to whom merchandise or services are sold is called a vendor.

Social security and Medicare taxes are paid by both employees and employer.

Temporary or nominal accounts begin a new period with the ending balance from the previous period.

A financial statement that summarizes the changes in owner's equity during a fiscal period is called the balance sheet.

An account is used to record and summarize the increases and decreases of an asset, liability, capital, revenue, or expense.

The General Journal is a listing of all the accounts in the general ledger.

A debit entry decreases asset and expense accounts or increases liability, owner's equity, and revenue accounts

The single entry] accounting system records at least two entries for each transaction.

Transactions are initially recorded in an accounting record called a journal.

Subtotalling is the process of transferring balances from the journals to the general ledger.

The general ledger is the accounting record that contains the balances of all the accounts.

Business papers and documents such as invoices are called source documents.

Liabilities are the property (goodies) owned by a business.

A Cash Flow Statement is the financial statement that presents the assets, liabilities, and equity of a business at a point in time.