Chapter 3: The Accounting Information System Flashcards
1
Q
Assets/Left/Debit
A
Increases by debits
Decreased by credits
Assets, Expenses, Dividends
Cash is debited if money is received (cash increases)
2
Q
Liabilities/Right/Credit
A
Increased by credits
Decreased by debits
Liabilities, equity, revenue
Cash is credited if money is spent (cash decreases)
3
Q
Accounting information system
A
The system of collecting and processing transaction data and communicating financial information to decision‐makers
4
Q
Journalizing
A
The procedure of entering transaction data in the journal
5
Q
Posting
A
The procedure of transferring journal entry amounts to the ledger accounts
6
Q
Ledger
A
The group of accounts maintained by a company
7
Q
Trial balance
A
A list of accounts and their balances at a given time
