Ch 4 - Gen Ledger and Journal VOCAB

Question 1

Define accounting cycle.

Answer 1

series of steps performing during each accounting period to classify, record and summarize data for a business and to produce needed financial info

Question 2

Define audit trail. (4)

Answer 2

1. a chain of references that makes it possible to
2. trace information
3. locate errors
4. prevent fraud

Question 3

Define balance ledger form.

Answer 3

a ledger account form that shows the balance of the account after each entry is posted

Question 4

Define chronological order.

Answer 4

organized in the order in which the events occur

Question 5

Define compound entry.

Answer 5

a journal entry with more than one debit or credit

Question 6

Define correcting entry.

Answer 6

A journal entry made to correct an erroneous entry

Question 7

Define general journal. (2)

Answer 7

1. financial record for entering all types of business transactions
2. record of original entry

Question 8

Define general ledger. (2)

Answer 8

1. permanent, classified record of all accounts used in a firm’s operation
2. record final entry

Question 9

Define journal.

Answer 9

record of original entry

Question 10

Define journalizing.

Answer 10

recording transactions in a journal

Question 11

Define ledger.

Answer 11

record of final entry.

Question 12

Define posting.

Answer 12

transferring data from a journal to a ledger.