Information Processing

Question 1

A record that is kept for each asset, liability, equity, revenue, expense, and dividend component of an entity

Answer 1

account

Question 2

A listing of the accounts of an entity, along with any identification coding

Answer 2

chart of accounts

Question 3

The total of all subcomponent account records for an account; e.g., the sum of all individual accounts receivable

Answer 3

control account

Question 4

The nature of an action to an account to indicate an increase (liabilities, equity, and revenue) or decrease (assets, expenses, and dividends); usually right-justified in an entry

Answer 4

credit

Question 5

The nature of an action to an account to indicate an increase (assets, expenses, and dividends) or decrease (liabilities, equity, and revenue); usually left-justified in an entry

Answer 5

debit

Question 6

A record of the accounts comprising financial statements, and their respective balances

Answer 6

general ledger

Question 7

A chronological listing of the transactions and events of an organization, in debit/credit format

Answer 7

journal

Question 8

The process of transferring journal entry effects into the respective general ledger accounts

Answer 8

posting

Question 9

A document evidencing a transaction or event and potentially providing for the initiation of a journal entry

Answer 9

source document

Question 10

A subcomponent account record providing individual balance details; e.g., the record for one customer out of a group of customers comprising all accounts receivable

Answer 10

subsidiary account

Question 11

An abstract representation of an account, with the left side of the “T” representing debits and the right side credits

Answer 11

T accounts

Question 12

A listing of account balances from the ledger, used to test the equality of debits and credits

Answer 12

trial balance