Pink Handout-Chapter 3

Question 1

Journal

Answer 1

listing of complete transaction in chronological order

Question 2

Ledger

Answer 2

• one for each account
• listing of all increases and decreases to each account

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Question 3

Trail Balance

Answer 3

• prove total debits=total credits

- to help prepare financial statements

Question 4

What does the trial balance not prove?

Answer 4

does not prove all entries are correctly recorded

Question 5

Accounting cycle

Answer 5

procedures to recording accounting data