Chapter 2 Vocab

Question 1

Measuring External Transactions Step 1

Answer 1

gathering information about a transaction

Question 2

Measuring External Transactions Step 2

Answer 2

analyze the impact of the transaction on the accounting equation

Question 3

Measuring External Transactions Step 3

Answer 3

assess whether the transaction results in a debit or credit to account balances

Question 4

Measuring External Transactions Step 4

Answer 4

record the transaction in a journal using debits & credits

Question 5

Measuring External Transaction Step 5

Answer 5

post the transaction to the t-accounts in general ledger

Question 6

Measuring External Transactions Step 6

Answer 6

Prepare a trial balance

Question 7

Trial Balance

Answer 7

a list of all accounts & their balances at a particular date

Question 8

Revenue Recognition Principle

Answer 8

record revenue in the period in which we provide goods & services to customers for the amount the company is entitles to receive

Question 9

General Ledger

Answer 9

a collection of each account with its individual transactions & resulting account balance

Question 10

Posting

Answer 10

process of transferring the debit & credit information from the journal to individual accounts in the general ledger

Question 11

Trial Balance

Answer 11

list of all accounts & their balances at a particular date, show that total debit equal total credits

Question 12

T-account

Answer 12

simplified from of a general ledger account with space at the top for the account title, one side for recording debits, & one side for recording credits

Question 13

Journal

Answer 13

chronological record of all transactions affecting a firm

Question 14

Account

Answer 14

record of the business activities related to a particular item

Question 15

Accounting Cycle

Answer 15

full set of procedures used to accomplish the measurement/communication process of financial accounting