Accounting Chapter #4 Terms
Expenses are accounts that begin with which number?
5
A journal is commonly referred to as a(n) _________________ because it is here that the first formal accounting record is made.
book of original entry
A list of all the accounts used by a business enterprise is called a(n)
chart of accounts
Transactions affecting more than two accounts are called
compound
When an incorrect entry has been journalized and posted, a(n) ______________ entry is required.
correcting
The information in the Posting Reference columns of the journal and the ledger accounts provides a link known as a(n)
cross-reference
Posting from the journal to the ledger is done ____________ or at frequent intervals.
daily
A(n) _____________ account allows the accountant to keep a running balance.
four-column general ledger
A complete set of all accounts used by a business is known as the
general ledger
A document that provides a day-by-day listing of transactions of a business is called a(n)
journal
The act of entering transactions into a journal is called
journalizing
In a journal, debits are entered first; then credits are entered and indented
one half inch from left side
Accounts that begin with the number "3" are
owner's equity
The process of copying debits and credits from the journal to the ledger accounts is called
posting
Drawing a line though the incorrect amount or account title and writing correct information above it is an example of the _____________ method.
ruling
A(n) ______________ error occurs when you move a number a decimal place to the right or left.
slide
A document that provides information about a business transaction is called a(n)
source document
A(n) ________________ error occurs when you use the right numbers but in the wrong order.
transposition
A(n) ______________ is taken after transactions are posted to the general ledger accounts to be sure that debit and credit balances in the ledger are equal.
trial balance