Unit 6-8 Flashcards

(20 cards)

1
Q

what is journalizing?

A

The recording of transactions in a journal

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2
Q

what are the four parts of a journal entry?

A

date of transaction

the account debited and the amount

the account credited and the amount (indented)

and explanation giving details of the transaction

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3
Q

what are three advantages of the journal?

A

The complete transaction is recorded in one place

reduces errors

errors are easier to spot

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4
Q

what is a journal entry?

A

A journal entry is a transaction recorded in a journal

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5
Q

what is double entry accounting?

A

each debit amount must have an equal credit amount

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6
Q

what is the general ledger?

A

The letter is a group of accounts. Each account shows a complete up-to-date record of all transactions affecting only that particular account

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7
Q

what is posting?

A

posting is the process of transferring information to the ledger from the Journal

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8
Q

why are T-accounts not used?

A

they are not very practical, there is less chance of error in the balance column form of account than a T-account

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9
Q

what is the chart of accounts?

A

A list of the ledger account names and numbers

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10
Q

what are the steps in posting to the ledger?

A
locate account 
record the date 
enter the amount 
calculate the new balance 
complete the ledger PR column
complete the journal PR column
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11
Q

what are posting references?

A

posting references link journal entries to postings in the ledger

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12
Q

what is an audit?

A

A systematic check of accounting records and procedures by an accountant

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13
Q

what is an opening entry?

A

The opening entry records the assets, liabilities, and owners equity when a business first begins operations

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14
Q

what is a compound entry?

A

A complementary has more than one debit or more than one credit

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15
Q

what is a trial balance?

A

The trial balance is a test, or trial, to prove that the ledger is mathematically in balance

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16
Q

what is the accounting cycle

A

The set of accounting procedures performed in each accounting period

17
Q

what are source documents?

A

any business for that serves as the original source of information that the transaction has occurred
example a sales slip

18
Q

why are source documents prenumbered?

A

they’re numbered to prevent errors and losses

19
Q

what is the principle of objectivity?

A

requires objective evidence to support the value used to record transactions

20
Q

what is the journal?

A

A record of transactions recorded in chronological order