Accounting: Chapter 3 Content Review
An informal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits
Trial balance
The order of the flow of accounting data is to (1) record in journal, (2) post in a ledger, (3) prepare a trial balance
True
The time period for which an income statement is prepared is called the accounting period
True
The trial balance listing is in the same order as the chart of accounts
True
The trial balance proves the equality of debits and credits
True
Transactions are listed in chronological order in the journal
True
The period of time for which an income statement is prepared
Accounting period
The 12-month period a business chooses for its accounting year that runs from January to December
Calendar year
A journal entry that affects more than two accounts
Compound journal entry
Adding to the PR column of the journal that account number of the ledger account that was updated from the journal
Cross-referencing
When recording a transaction in a journal, the account listed first is always the
Debit
A trial balance is a list of the accounts and account numbers
False
Posting is the process of transferring information from the journal to the trial balance
False
An accounting period that runs for any 12 consecutive months
Fiscal year
A listing of business transactions in chronological order
General journal
How are credits distinguished from debits in the journal?
Indenting
Business transactions are first recorded in the
Journal
The process of recording a transaction entry into the journal
Journalizing
The transferring, copying, or recording of information from a journal to a ledger
Posting
Revenue is traditionally recognized in the accounting records when
Services are rendered
A running balance is maintained in the ledger after each transaction is posted
True
The process that begins with the recording of business transactions into a journal and ends with the completion of a post-closing trial balance
Accounting cycle