Accounting exam 1 (Transaction cycle)

Question 1

(1) Transaction

Answer 1

An exchange between two independent parties, both of whom expect to benefit

Question 2

(2) Journal entry

Answer 2

Using the tool of debit and credit to put the transaction into the accounting equation

Question 3

(3) Post to ledger

Answer 3

Listing of all accounts and their current balance

Question 4

(4) Trial Balance

Answer 4

Listing of all accounts and their current balance to make sure debits = credits