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Basic Accounting Terms

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Define the following:
- Accounts
- General ledger
- Journal entry
- Asset
- Liability
- Equity

- Define debit and credit and explain how they work.

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Solution Summary

Solution includes a definition of basic accounting terms like accounts, liability, debits, credits, etc. solutions also goes into detail explaining each one and in some instances giving examples.

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Accounts are simply established to provide a record of individual business transactions as they apply to a certain area or item. Your personal checking account is established in order to provide a record of individual personal financial transactions you create when you write a check. All of the accounts are listed in a general ledger. Today, the actual ledger book has long since been replaced by accounting software that creates a general ledger on the computer. The concept however has not been altered.

The general ledger is the central location for maintaining all your accounts.

Journal entries refer to the posting or entering of the financial transactions to a particular account.

Assets, Liabilities, Equity, Revenue and Expenses
Assets are accounts that add value to your individual or business worth.
Liabilities are ...

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