Accounting Ch. 3

Cross - referencing

Adding to the PR column of the journal the account number of the ledger account that was updated from the journal

Accounting cycle

The process that begins with the recording of business transaction or procedures into a journal and ends with the completion of a post closing trial balance.

Journal entry

The transaction (debit and credit's) that is recorded into a journal once it is analyzed

Posting

The transferring, copying, or recording of information from a journal to a ledger

Compound journal entry

A journal entry that affects more than two accounts

Journal

A listing of business transactions in chronological order. Also known as general journal

Four - column account

A running balance account that records debit and credit and has a column for an ending balance

Trial balance

And in formal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits

Book of final entry

Book that records information about business transactions from a book of original entry. Example: ledger

Book of original entry

Book that records the first formal information about business transactions

Interim reports

Financial statements that are prepared for a month, quarter, or some other portion of the fiscal year

Calendar year

The 12 month period a business uses for the counting year. Aka: a fiscal year and natural business year

Transposition

The accidental re-arrangement of digits of a number

Slide

The error that results in adding or deleting zeros in the writing of a number

Accounting period

The period of time for which an income statement is prepared

Journalizing

The process of recording a transaction into the journal