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