Chap 4

Question 1

accounting cycle

Answer 1

a series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information.

Question 2

audit trail

Answer 2

a chain of references that makes it possible to trace information, locate errors, and prevent fraud.

Question 3

balance ledger form

Answer 3

a ledger account form that shows the balance of the account after each entry is posted

Question 4

chronological order

Answer 4

organized in the order in which the events occur

Question 5

compound entry

Answer 5

a journal entry with more than one debit or credit

Question 6

correcting entry

Answer 6

a journal entry made to correct an erroneous entry

Question 7

general journal

Answer 7

a financial record for entering all types of business transactions; a record of final entry

Question 8

general ledger

Answer 8

a permanent, classified record of all accounts used in a firm’s/business operation; a record of final entry

Question 9

Journal

Answer 9

the record of original entry

Question 10

Journalizing

Answer 10

recording transactions in a journal

Question 11

Ledger

Answer 11

the record of final entry

Question 12

posting

Answer 12

transferring data from a journal to a ledger