Acctg Chapter 4 Terms

Front 1

Accounting Cycle

Back 1

a series of steps performed during each acctg period, to classify, record and summarize data for a business to produce needed financial info.

Front 2

Audit Trail

Back 2

a chain of reference that makes it possible to trace information, locate errors and prevent fraud.

Front 3

Chronological Order

Back 3

an order in which things occurr

Front 4

Compound Entry

Back 4

a journal entry that contains more than one debit or credit. Debits are recorded first, then credits

Front 5

General Journal

Back 5

is the record of original entry; for entering all types of business transactions

Front 6

Journal

Back 6

A diary of business activities

Front 7

Journalizing

Back 7

a process of recording journal xactions in the general ledger.

Front 8

Balance Ledger Form

Back 8

shows the balance of the account after each entry is posted.

Front 9

Correcting entry

Back 9

if an error is found before the posting, cross out, date and initial. if error is found after posting, do not erase

Front 10

Ledger

Back 10

It is the record of final entery;where the accounting forms are kept. ex: a binder book.

Front 11

posting

Back 11

the process of transferring data from the journal to the ledger. It is the third step of the accounting cycle.

Front 12

General Ledger

Back 12

is the record of final entry

Front 13

Normal Balance

Back 13

the normal balance of an account is the increase side.

Front 14

there are 5 steps to posting to the general ledger

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