Accounting Records

Question 1

steps of accounting system

Answer 1

1. transactions with external parties 2. transactions analyzed 3. transactions entered in journal 4. amounts posted to ledger 5. adjusting entries prepared 6. closing entries prepared

Question 2

double entry accounting system

Answer 2

records the dual effects of each financial transaction. Each transaction affects at least two accounts

Question 3

journal

Answer 3

chronological record of the entity’s transactions

Question 4

debit

Answer 4

increase in dollar amount

Question 5

credit

Answer 5

decrease in dollar amount

Question 6

t accounts

Answer 6

one of these for each account posted to the ledger. Aids in double entry bookkeeping. One associated with each account