Key terms

Account – рахунок – a record used to summarize all increases and decreases in a particular asset, such as Cash or any other type of asset, liability, owner’s equity, revenue, or expense.

Account balance – сальдо – the difference in dollars between the total debits and total credit of the account.

Accounting equation – бухгалтерське рівняння (балансове рівняння) –assets equal liabilities plus owner’s equity.

Assets – активи –economic resources (things of value) owned by a business which are expected to benefit future operations.

Chart of accounts – план рахунків – a listing of the ledger accounts titles and numbers being used by a given business.

Credi t – кредит, права сторона рахунку – an amount entered on the right-hand side of an account. A credit is used to record a decrease in an asset and an increase in a liability or owner’s equity.

Credit balance – кредитове сальдо – the balance of an account in which the total amount of credits exceeds the total amount of debits.

Debit – дебет, ліва сторона рахунку – an amount entered on the left-hand side of an account. A credit is used to record an increase in an asset and a decrease in a liability or owner’s equity.

Debit balance – дебетове сальдо – the balance of an account in which the total amount of debits exceeds the total amount of credits.

Double-entry bookkeeping system – система подвійного запису – in recording transactions the total dollar amount of debits must be equal the total dollar amount of credits.

Entry – запис господарської операції –a record made in a book of account, register, or computer file of a financial transaction, event, proceeding, etc.

Equity – частка власності –a share of owner’s capital in a company.

Financial Statements – фінансові звіти – reports which summarize the financial position and operating results of a business (balance sheet and income statement).

Financial statement order – порядок запису статей у фінансовуму звіті – the usual sequence of accounts in a ledger; that is, assets first, followed by liabilities, owner’s equity, revenue, and expenses.

Journal (book of original entry) – журнал обліку господарських операцій – A chronological record of transactions, showing for each transaction the debits and credits to be entered in specific ledger accounts. The simplest type of journal is called a general journal.

Journalizing – фіксація трансакції в журналі обліку – the process of recording a transaction in a journal. To journalize means to prepare an entry in a journal.

Ledger – головна бухгалтерська книга – a loose-leaf book, file, or other record containing all the separate accounts of a business.

Liabilities – пасиви; залучені кошти – debts or obligations of a business. The claims of creditors against the assets of a business.

Owner’s equity – власний капітал – the excess of assets over liabilities. The amount of an owner’s net investment in a business plus profits from successful operations which have been retained in a business and minus losses.

Posting – проводка –the process of transferring information from the journal to individual accounts in the ledger.

Source (business) document – первинний документ – original evidence of transactions, as for example, cheque, sales tickets, and cash register tapes.

Trial balance – пробний баланс – a two-column schedule listing the names and the debit or credit balances of all accounts in the ledger.