Vocabulary
Assets = Liabilities + Equity
What is the Accounting Equation?
There is this number of general ledger divisions
What is 5?
When debits in an account exceed credits, the account is balance is a ___
What is debit?
This is the process of transferring data from the journal to the ledger
What is posting?
This is the first step when making a journal entry
What is the date?
A list of account titles and numbers showing the location of each account in a ledger
What is chart of accounts?
This is a permanent account
Entry made on the right side of the account
What is a credit?
Any business activity that changes assets, liabilities or owner's equity
When you journal an incorrect entry, this is the first step
What is draw a line through the entire entry?
This is a temporary account that decreases owner's equity
What is withdrawals?
J. Smith withdrawing $3,000 results in a credit to this account
What is withdrawals?
Entry made on the left side of the account
What is a debit?
The process of planning, recording, analyzing, and interpreting financial information
Accounting
This is the last step in posting
What is writing the account number in the Post. Ref.?
Accounts used by a business can be kept on pages or cards which are kept together in a book or file are called this
What is a ledger?
This is a temporary account
What is sales?
An increase in assets
What is debit?
Financial rights to the assets of a business
What are equities?
If an account error is found this is prepared as the source document describing the correction to be made
What is a memorandum?
This is an example of a source document
What is a receipt?
What is a check?
What is a memo?
What are sales invoices?
What are calculator tapes?
Cash would be found in this chart of accounts division
What is 1. assets?
When revenues are involved the account is
What is credited?
Financial reports that summarize the results in accounting records an reports
What are financial statements?
A check mark is written in the Post Ref when this happens
What is no amounts are individually posted?
What is sales?