Chapter 2

Question 1

account

Answer 1

is the detailed record of all increases and decreases that have occurred in an account during a specified period

Question 2

chart of accounts

Answer 2

is used to organize a company’s accounts

Question 3

ledger

Answer 3

is a record holding all the accounts of a business, the changes in those accounts and their balances

Question 4

double-entry system

Answer 4

to record the dual effects of each transaction

Question 5

sources documents

Answer 5

provided evidence and data for recording tranactions

Question 6

journal

Answer 6

is the record of the transaction in date order

Question 7

posting

Answer 7

transferring data from the journal to the ledger

Question 8

trial balance

Answer 8

is a summary of the ledger listing all of the accounts with their balances
-used for internal users only