Financial Terms “J”



A journal is where financial transactions are first recorded in chronological order. Each transaction is called a journal entry. The journal is called the book of original entry. Journal entries are later posted to the ledger.

Journal Entry

A journal entry is recording a business transaction in a company’s accounting records. A list of journal entries is called a journal. In accounting, journal entries are made using a system of debits and credits. In each journal entry, debits must equal credits.

Journal entries use the five types of accounts.

In accounting, the five types of accounts are:

  1. Assets – resources owned by a business; what the company owns
  2. Liabilities – debts of the company; what the company owes
  3. Equity – claim on the assets by the owners; calculated as assets – liabilities = equity; equity is the net worth of the company
  4. Revenues – when a business receives assets from selling products and services
  5. Expenses – when a business uses or consumes assets to create revenues

Financial Terms Dictionary

Jeff Mankin

Jeff Mankin teaches financial literacy. His website is

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