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# Glossary of Accounting Terms ## Two-column general journal A simple journal with two money columns, one for debit amounts and one for credit amounts. ## V ### Valuation account An account that must be considered along with a given asset account to show the true value of the asset account. Sa...

# Glossary of Accounting Terms ## Two-column general journal A simple journal with two money columns, one for debit amounts and one for credit amounts. ## V ### Valuation account An account that must be considered along with a given asset account to show the true value of the asset account. Same as Contra account. ### Value-added tax A tax which government levies at each stage in the production/distribution chain as the value is added to the product. ### Voucher A business document that establishes the validity of accounting records. ### Voucher jacket A file folder containing all the information and documents belonging to a single purchase order. ### Voucher system A rigid set of procedures by which the documents supporting all expenditure transactions must be verified before any payments are authorized. ## W ### Wages An amount paid periodically to an employee based on the number of hours worked or the quantity of goods produced. Wages are usually paid on a weekly or biweekly basis. ### Wholesaler A merchandising business that buys goods from manufacturers and other suppliers and sells them to retailers with a view to making a profit. ### Work sheet An informal business form prepared in pencil on columnar bookkeeping paper, used to organize and plan the information for the financial statements. ### Working capital The difference between the current assets and the current liabilities of a business. ### Working capital ratio A measure of a business's ability to pay its debts by the ratio of current assets to current liabilities. Same as Current ratio.