Chapter 2: Analysing and recording transactions Flashcards
1
Q
What is the analyzing and recording process?
A
Analyze each transaction and event from source documents
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Record relevant transactions and events in a general journal
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Post journal information to general ledger accounts
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Prepare the trial balance
2
Q
What is an account?
A
It is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.
3
Q
What is a ledger?
A
It is a record that contains all accounts used by the company
