Chapter 4-The General Journal And The General Ledger Flashcards
Steps of the Accounting Cycle are?
- Analyze business transaction.
- Record of business transactions or Journalizing.
- Posting of business transaction.
What is the Accounting Cycle?
It’s a series of steps performed during each accounting period to classify, record and summarize data for a business and to produce needed financial information.
Where are business transactions recorded?
Journal
What is a journal?
It’s a diary of business activities.
In what order the journal list of transactions recorded?
Chronological order
The journal is sometimes called?
The record of original entry.
Why is the journal called the record of original entry?
Because it is where the transactions are first entered in the accounting records.
What is the general journal
It’s a financial record for entering all types of business transactions.
What is journalizing?
Journalizing is the process of recording transactions in the general journal.
What is an audit trail?
The audit trail is a chain of references that makes it possible to trace info, locate errors, and prevent fraud.
What are compound entries?
A journal entry that contains more than one debit or credit.
What is a balance ledger form?
A ledger account form that shows the balance of the account after each entry is posted
What is correcting entry
A journal entry made to correct an erroneous entry
What is a general ledger
A permanent classified record of all accounts used in a firm’s operation, a record of final entry.
What is posting
Transferring data from a journal to a ledger
