Contra accounts are used in financial accounting to offset balances between accounts, often simplifying the settlement process and providing clearer financial statements.
Double-entry accounting, also known as double-entry bookkeeping, is a system of financial records used in business whereby equal debits and credits are recorded for each transaction, ensuring the accounting equation (Assets = Liabilities + Owner's Equity) remains balanced.
Double-entry cost accounting involves maintaining cost accounting records using the principles of double-entry bookkeeping, which ensures that every financial transaction is recorded in at least two accounts, balancing debits and credits.
A journal entry is a detailed record of a business transaction in accounting, consisting of debits and credits and supporting a specific accounting period.
The Preclosing Trial Balance is an internal financial statement used to ensure that total debits equal total credits before the financial books are closed for the accounting period.
