CH2 - Analyzing Transactions

Question 1

An accounting form that is used to record the increases and decreases in each financial statement item

Answer 1

Account

Question 2

The amount of the difference between the debits and the credits that have been entered into an account

Answer 2

Balance of the Account

Question 3

An account used for a proprietorship that represents the owner’s equity

Answer 3

Capital Account

Question 4

A list of the accounts in the ledger

Answer 4

Chart of Accounts

Question 5

An entry that is prepared when an error has already been journalized and posted

Answer 5

Correcting Journal Entry

Question 6

A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits

Answer 6

Double-Entry Accounting System

Question 7

Financial analysis that compares an item in a current statement with the same item in prior statements

Answer 7

Horizontal Analysis

Question 8

The initial record in which the effects of a transaction are recorded

Answer 8

Journal

Question 9

The process of recording a transaction in the journal

Answer 9

Journalizing

Question 10

A group of accounts for a business

Answer 10

Ledger

Question 11

Dependent upon whether or not increases in the account are recorded as debits or credits

Answer 11

Normal Balance of an Account

Question 12

The process of transferring the debits and credits from the journal entries to the accounts

Answer 12

Posting

Question 13

An error in which the entire number is moved one or more spaces to the right or left; $542.00 as $54.20 or $5,420.00

Answer 13

Slide

Question 14

An error in which the order of the digits is changed; $542 as $452 or $524

Answer 14

Transposition

Question 15

A summary listing the titles and balances of accounts in the ledger

Answer 15

Trial Balance

Question 16

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries

Answer 16

Unadjusted Trial Balance