A transaction is any event or condition, such as buying or selling, that must be recorded in the financial records of a business.

A Chart Of Accounts is a coded listing of all the accounts included in the General Ledger.

Plant Machinery is a type of asset.

Assets are amounts that a business owes to others.

A Trial Balance is a tool that is used to help prepare Financial Statements.

Accounts Receivable are amounts that a business owes to others.

Revenue is amounts that a business earns by selling products and/or services.

Profit is the amount that a business's revenues exceed its expenses.

A T-Account is a formal accounting record.

The single entry bookkeeping method records a debit and a credit for each transaction.

A sole proprietorship is a type of business that is owned by one individual.

An Invoice that a business owes to a supplier is a Liability.

Property is another term for Assets.

Owner's Equity (Capital) is the amount left for the owner(s) after all the debts have been paid.

A debit is an entry that increases a liability or owner's equity account; or that decreases an asset or expense account.

If a business uses the double entry method of accounting, debits should always equal credits.

The basic accounting equation is:
Assets = Liabilities + Owner's Equity

Expenditures made for advertising are recorded in a revenue account.

The Income Statement is a financial report that shows the assets, liabilities, and owner's equity of a business.

A credit to a revenue or liability account increases the account's balance.