Vocabulary
The definition of a general ledger
What is a group of accounts that contains all accounts needed to prepare financial statements.
COA meaning
What is chart of accounts?
Steps to opening an account (Hint: there are two)
What is
1. write account title
2. Write account number
Does Sales go under debit or credit for posting?
Credit
When is a correcting entry needed?
What is when you post in the wrong account?
The definition of posting
What is transferring information from a journal entry to a ledger account?
Meaning of the first number of the account number
(ex. 150)
What is the location within the general ledger?
Purpose of a Post. Ref. (Hint: there are three)
What is
1. an entry can be traced back to its source in a journal
2. an entry can be traced to where it was posted in an account
3. The interrupted posting can be easily started back up again
Condition for an account to balance under debit
What is assets, expenses, losses, and the owner's drawing?
What do you do when you post to the wrong account?
What is draw a line through the incorrect entry and record posting in the correct account?
The definition of account number
What is the number assigned to an account?
Meaning of the first number of the account number
(ex. 150)
What is general ledger division?
What happens to the totals in a general ledger if you post a debit underneath a credit?
What is subtract?
Mark indicates that a general amount column total is NOT posted
What is a Check Mark?
Slip that indicates a journal entry needs to be corrected
What is memorandum?
The definition of correcting an entry
What is correcting an incorrect journal entry using an additional journal entry?
Order of translations posted in a journal
Chronologically
Importance of account number
What is to differentiate between different accounts?
Account number location after posting for sales and cash totals
What is in parenthesis under their totals in the journal?
Steps to correcting an incorrect amount posted in an account (Hint: there are three)
What is
1. Draw a line through the incorrect amount
2. Write the correct amount just above the incorrect amount in the same space
3. Recalculate the account balance
The definition of file maintenance?
What is the procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current?
Number assigned for the following division:
Assets, Liability,Expense, Owner's Equity, Revenue
What is
Assets (1), Liability (2), Expense(5), Owner's Equity(3), Revenue(4)
Steps for posting (Hint: there are five)
What is
1. Write the date
2. Write the journal page number in Post. Ref. of general ledger
3. Write amount (debit or credit)
4. Write new account balance
5. Write account number in Post. Ref. of journal
Cash and Sales account numbers
What is 110 and 410?
Steps to correcting an amount posted in the wrong column (Hint: there are three)
What is
1. Draw a line through the incorrect item in the account
2. Record the posting in the correct amount column
3. Recalculate the account balance