Flashcards in Ch 4 - Gen Ledger and Journal VOCAB Deck (12):
Define accounting cycle.
series of steps performing during each accounting period to classify, record and summarize data for a business and to produce needed financial info
Define audit trail. (4)
1. a chain of references that makes it possible to
2. trace information
3. locate errors
4. prevent fraud
Define balance ledger form.
a ledger account form that shows the balance of the account after each entry is posted
Define chronological order.
organized in the order in which the events occur
Define compound entry.
a journal entry with more than one debit or credit
Define correcting entry.
A journal entry made to correct an erroneous entry
Define general journal. (2)
1. financial record for entering all types of business transactions
2. record of original entry
Define general ledger. (2)
1. permanent, classified record of all accounts used in a firm's operation
2. record final entry
record of original entry
recording transactions in a journal
record of final entry.