Accounting 201Chapter 02 Key Words

Question 2

Account

Answer 2

A summary of the effects of all transactions related to a particular item over a period of time.

Question 3

Chart of accounts

Answer 3

A list of all account names used to record transactions of a company.

Question 4

External transactions

Answer 4

Transactions the firm conducts with a separate economic entity.

Question 5

General ledger

Answer 5

All accounts used to record the company’s transactions.

Question 6

Internal transactions

Answer 6

Events that affect the financial position of the company but do not include an exchange with a separate economic entity.

Question 7

Journal

Answer 7

A chronological record of all transactions affecting a firm.

Question 8

Posting

Answer 8

The process of transferring the debit and credit information from the journal to individual accounts in the general ledger.

Question 9

T-account

Answer 9

A simplified form of a general ledger account with space at the top for the account title and two sides for recording debits and credits.

Question 10

Trial balance

Answer 10

A list of all accounts and their balances at a particular date, showing that total debits equal total credits.