Recording Business Transactions

Question 1

Chart of Accounts

Answer 1

A list of all accounts and their account numbers in the ledger

Question 2

Compound Journal Entry

Answer 2

A journal entry with more than one debit and credit

Question 3

Ledger

Answer 3

The book of accounts

Question 4

Trail Balance

Answer 4

A list of all the ledger accounts with their balances.

Question 5

Describe the Process of the Accounting Cycle

Answer 5

1. Start with the balances in the ledger at the beginning of the period
2. Identify and analyze transactions as they occur.
3. Record transactions in a journal.
4. Post (copy) from the journal to the ledger accounts
5. Prepare the unadjusted trial balance
6. Prepare an adjusted trial balance
7. Prepare the financial statements
8. Journalize and post the closing entries
9. Prepare the post-closing trial balance