Chapter 3 Flashcards
(15 cards)
An individual accounting record of increases and decreases in specific asset, liability, stockholders’ equity, revenue or expense items.
Account
The system of collecting and processing transaction data and communicating financial information to decision makers.
Accounting information system
Events that require recording in the financial statements because they affect assets, liabilities, or stockholders’ equity.
Accounting transactions
A list of company’s accounts
Chart of accounts
The right side of an account
Credit
The left side of an account
Debit
A system that records the two-sided effect of each transaction in appropriate accounts.
Double-entry system
The most basic form of journal.
General journal
A ledger that contains all asset, liability, stockholders’ equity, revenue, and expense accounts.
General ledger
The procedure of entering transaction data in the journal.
Journalizing
An accounting record in which transactions are initially recorded in chronological order.
Journal
The group of accounts maintained by a company.
Ledger
The procedure of transferring journal entry amounts to the ledger accounts.
Posting
The basic form of an account
T account
A list of accounts and their balances at a given time.
Trial balance
