Chapter 2 - Transaction Analysis

Question 1

account

Answer 1

The record of the changes that have occurred in a
particular asset, liability, or stockholders’equity during a period.
The basic summary device of accounting.

Question 2

accrued liability

Answer 2

A liability for an expense that has not

yet been paid by the company.

Question 3

cash

Answer 3

Money and any medium of exchange that a bank accepts at face value.

Question 4

chart of accounts

Answer 4

List of a company’s accounts and their account numbers.

Question 5

credit

Answer 5

The right side of an account.

Question 6

debit

Answer 6

The left side of an account.

Question 7

journal

Answer 7

The chronological accounting record of an entity’s transactions.

Question 8

ledger

Answer 8

The book of accounts and their balances.

Question 9

posting

Answer 9

Copying amounts from the journal to the ledger.

Question 10

transaction

Answer 10

Any event that has a financial impact on the business and can be measured reliably.

Question 11

trial balance

Answer 11

A list of all the ledger accounts with their balances.