Chapter 3 Glossary Review Flashcards
What is an account?
An individual accounting record of increases and decreases in a specific asset, liability, stockholders’ equity, revenue, or expense items.
What is the Accounting information system?
The system of collecting and processing transaction data and communicating financial information to decision-makers.
What are Accounting transactions?
Events that require recording in the financial statements because they affect assets, liabilities, or stockholders’ equity.
What is the Chart of Accounts?
A list of a company’s accounts.
What is Credit in Accounting?
The right side of an account.
What is Debit in Accounting?
The left side of an account.
What is the Double-entry system?
A system that records the two-sided effect of each transaction in the appropriate accounts.
What is the general journal?
The most basic form of a journal.
What is General Ledger?
A ledger that contains all asset, liability, stockholders’ equity, revenue, and expense accounts.
What is a Journal in Accounting?
n accounting record in which transactions are initially recorded in chronological order.
What is Journalizing?
The procedure of entering transaction data in the journal.
What is Ledger?
The group of accounts maintained by a company.
What is Posting?
The procedure of transferring journal entry amounts to the ledger accounts.
What is a T-account?
The basic form of an account
What is the Trial Balance?
A list of accounts and their balances at a given time.
