CH2 - Analyzing Transactions Flashcards Preview

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Flashcards in CH2 - Analyzing Transactions Deck (16):
1

An accounting form that is used to record the increases and decreases in each financial statement item

Account

2

The amount of the difference between the debits and the credits that have been entered into an account

Balance of the Account

3

An account used for a proprietorship that represents the owner's equity

Capital Account

4

A list of the accounts in the ledger

Chart of Accounts

5

An entry that is prepared when an error has already been journalized and posted

Correcting Journal Entry

6

A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits

Double-Entry Accounting System

7

Financial analysis that compares an item in a current statement with the same item in prior statements

Horizontal Analysis

8

The initial record in which the effects of a transaction are recorded

Journal

9

The process of recording a transaction in the journal

Journalizing

10

A group of accounts for a business

Ledger

11

Dependent upon whether or not increases in the account are recorded as debits or credits

Normal Balance of an Account

12

The process of transferring the debits and credits from the journal entries to the accounts

Posting

13

An error in which the entire number is moved one or more spaces to the right or left; $542.00 as $54.20 or $5,420.00

Slide

14

An error in which the order of the digits is changed; $542 as $452 or $524

Transposition

15

A summary listing the titles and balances of accounts in the ledger

Trial Balance

16

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries

Unadjusted Trial Balance