Mod 10

Question 1

Account

Answer 1

Individual accounting record of increases and decreases to a specific asset, liability, stockholders equity, revenue, or expense items

Question 2

Accounting cycle

Answer 2

Series of procedures in the collection, processing, and communication of financial info

Question 3

Accounting information system

Answer 3

The system of collecting and processing transaction data and communicating financial info to decision makers

Question 4

Accounting transaction

Answer 4

An event that requires recording in the financial statements because it affects assets, liabilities, or stockholder equity

Question 5

Adjusting entries

Answer 5

Events that occurred during the period, but not yet recorded are analyzed, entered into the general journal, and posted to the general ledger

Question 6

Adjusted trial balance

Answer 6

A tool to help detect errors during the accounting cycle

Prepare it using info from the general ledger after posting the adjusting entries

Question 7

Credit

Answer 7

Right side of an account

Increase account with credit balance → credit the account

Question 8

Debit

Answer 8

Left side of an account

Increase account with debit balance → debit the account

Question 9

Double entry system

Answer 9

System that records the two sided effect of each transaction in appropriate accounts (debits and credits)

Question 10

General journal

Answer 10

Most basic form of journal

Question 11

General ledger

Answer 11

Ledger that contains all asset, liability, equity, revenue, and expense accounts

Question 12

Journal

Answer 12

Accounting record in which the firm initially records transactions in chronological order

Question 13

Journalizing

Answer 13

Process of entering transaction data in the journal

Question 14

Leger

Answer 14

Group of accounts maintained by a company

Question 15

Posting

Answer 15

Procedure of transferring journal entry amounts to ledger accounts

Question 16

T account

Answer 16

Most basic form of account

Question 17

Transaction analysis

Answer 17

Process of identifying the specific effects of economic events on the accounting equation

Question 18

Trial balance

Answer 18

List of accounts and their balances at a given time