Recording Process

Question 1

account

Answer 1

record of increases and decreases in a specific asset, liability, equity, revenue or expense item

Question 2

douple entry system

Answer 2

• each Transaction must affect at least two accounts
• A = L + E
• DR = CR

Question 3

journal

Answer 3

book of original entry, records transactions in chronological order

Question 4

ledger

Answer 4

contains the entire group pf accounts maintained by a company

Question 5

steps in recording process

Answer 5

• Basic Analysis
• equation Analysis
• debit-credit Analysis
• journalizing
  -posting
  -

Question 6

journalizing

Answer 6

entering Transaction data in the journal

Question 7

posting

Answer 7

process of transferring amounts form the Journal to the ledger accounts

Question 8

Trial balance

Answer 8

lists each account and his balance

Question 9

limitations of Trial balance

Answer 9

Trial balance may even balanced even when

• a Transaction is not journalized
• a correct Journal is not posted
• a Journal entry is posted twice
• incorrect amounts are used in journalizing and or Posting
• offsetting erros are made in recording the amount of a transaction