Chapter 7 Vocab

Question 1

what is posting

Answer 1

the process of transferring information from the journal to individual general ledger account

Question 2

what is a general ledger

Answer 2

a permanent record organized by account number

-provides up-to-date balances for each account including accounts payable and receivable

Question 3

what are ledger account forms

Answer 3

the accounting stationery used to record financial information about specific accounts

Question 4

what is a transposition error

Answer 4

error that occurs when two digits within an amount are accidentally reversed, or transversed

Question 5

what is a slide error

Answer 5

error that occurs when a decimal point is moved by mistake

Question 6

what is a correcting entry

Answer 6

an entry made to correct an error in a journal entry discovered after posting
use the words correcting entry in the description column below

Question 7

what is proving the ledger

Answer 7

adding all debit balances and all credit balances of ledger accounts and then comparing the two totals to see whether they are equal
sum of debit = sum of credit

Question 8

what is a trial balance

Answer 8

a list of all the general ledger account names and balances; it is prepared to prove the ledger