chapter 7 vocab

Question 1

the process of transfering information from the journal to individual ledger accounts

Answer 1

posting

Question 2

provides up to date balances for each account, including accounts payable and receivable, a permanent record organized by account #

Answer 2

general ledger

Question 3

the accounting stationery used to record financial information about specific accounts, used to record information about specific accounts in a manual accounting system

Answer 3

ledger account forms

Question 4

book of final entry

Answer 4

ledger

Question 5

adding all credit balances and all debit balances and then comparing the 2 totals to see if they are equal

Answer 5

proving the ledger

Question 6

what are the steps to the accounting cycle?

Answer 6

collect and verify source documents, analyze each transaction, journalize each transaction, post to the ledger, prepare trial balance

Question 7

proof of the equality of total debits an total credits. a list of all the general ledger account names and balances; it is prepared to prove the ledger.

Answer 7

trial balance

Question 8

occurs when 2 digits within an amount are accidentally reversed, or transposed ex: 469 –> 496

Answer 8

transposition error

Question 9

error that occurs when a decimal point is moved by mistake

Answer 9

slide error

Question 10

an entry made to correct an error in a journal entry discovered after posting

Answer 10

correcting entry