Accounting Book #4 Flashcards
book of original entry
a journal in which transactions are first recorded.
account
a device used to summarize all the changes that affect a single item in the accounting equation.
ledger
a group of accounts.
book of secondary entry
a ledger to which amounts from the journal are posted.
posting
transferring information from a journal entry to a ledger account.
Chart of Accounts
A list of all the accounts used by a business entity .
File Maintenance
The procedure of arranging accounts in a general ledger, inserting and deleting accounts, and keeping records current.
Income Statement
A financial statement that reports the revenue, expenses, and net income or net loss of a business for a specific period of time.
Balance Sheet
A form that shows the financial position of a business on a specific date.
General Ledger
A book that contains all of the accounts needed to prepare the financial reports of a business entity.
Account Balance
the difference between the debits and credits recorded in an account.
Account Number
the number assigned to an account in the ledger.
Balance Column Account
an account that has debit and credit columns for entering changes in the account and a column for entering the new account balance after each debit or credit is posted to the account.
Opening an Account
Writing the account title and number on the heading line of an account.
Opening Entry
the first entry made in a general journal that opens the accounts in a new set of books.
