Any document that provides information about a business and can be used to record a transaction.
What is a source document?
100
The process of copying journal entry debits and credits to the accounts affected.
What is posting?
100
The process of analyzing and adjusting certain accounts for preparing the financial statements.
What are adjustments?
100
This is when the work sheet is started and account changes are recorded and dated in the general journal.
What is the last day of the accounting period?
100
This closing journal entry transfers the business net income (profit) or loss to the owner's capital account
What is the 3rd closing entry?
200
A journal is sometimes called this because it is where the first formal accounting record of a transaction is made.
What is "book of original entry"?
200
A complete set of all the accounts used by a business and where journal entries are posted to.
What is the general ledger?
200
Where do changes to certain accounts appear after calculating the changes?
What is the adjustments columns of the work sheet?
200
This is when it is ok to record an adjusting journal entry and not post it to the general ledger.
What is NEVER...NEVER...NEVER?
200
The reason the Income Summary account is listed first before the expense accounts on the second closing entry.
What is "because the debit account(s) are always listed first when preparing journal entries"?
300
This is when the debit column of a journal entry must equal the credit column.
*********DAILY DOUBLE*********
What is ALWAYS...ALWAYS....ALWAYS?
300
This is when the account number for a posted account is written in the posting reference (post. ref.) column of the journal entry it came from.
*********Daily Double*******
What is after posting (copying) the account in the general ledger?
300
This records the "using up" of buildings, equipment and certain other assets that serve a business long term.
What is the depreciation adjustment?
300
This financial statement is always prepared first and tells you whether you made any money.
What is the Income Statement?
300
This account is closed in the first closing entry.
What is the revenue account?
400
The order (sequence) in which journal entries are recorded.
What is chronological or date order (sequence)?
400
The general ledger debit and credit columns where journal entries are posted.
What is the first set of debit and credit columns on the general ledger page being posted?
400
The set of 4 journal entries that close (reset to zero) certain accounts at the end of an accounting period and transfer the net income or net loss to the owner's capital account at the end of an accounting period.
What are closing entries?
400
This financial statement is always prepared second and updates the owner's capital account for net income (or loss) and any owner's drawings.
What is the Statement of Owner's Equity?
400
The only time closing entries are posted to the general ledger.
What is ALWAYS....ALWAYS.....ALWAYS?
500
Journal entries that require more than one debit and/or more than one credit.
What is a compound entry?
500
Where the trial balance is prepared when using a work sheet.
What are the first two columns of the work sheet?
500
The account that is only used in the closing process and represents net income or net loss when it is closed to the owner's capital account.
***********DAILY DOUBLE*********
What is the Income Summary account?
500
This financial statement is prepared last and verifies the fundamental accounting equation.
******Daily Double*********
What is the Balance Sheet?
500
The reason step 10 is taken in the accounting cycle.
********Daily Double*********
What is "because if your accounts don't balance after closing...they sure won't balance when you start the next accounting period"?