Chapter 2- The Recording Process Flashcards
0
Q
What are the steps of the recording process?
A
- Analyze each transaction
- Journalize each transaction
- Post to the ledger
1
Q
What is the double entry system?
A
For each debit entry there is an equal credit entry
2
Q
What is an importance of the journal?
A
Helps prevent or locate errors
3
Q
What is the ledger?
A
A group of accounts
4
Q
What is the primary purpose of a trial balance?
A
To prove mathematical equality
5
Q
What are the limitations of a trial balance?
A
There may still be errors even if total debits=total credits
6
Q
What is another name for the worksheet?
A
Working papers
