Accounting Study Guide
Posting is the process of transferring information from the journal to the trial balance.
False
The trial balance proves the equality of debits and credits.
False
When recording a transaction in a journal, the account listed first is always the
debit
Posting is performed by transferring information from the journal to the
ledger
To correct an error made in the journal (prior to posting in the ledger)
line out the incorrect portion of the entry and write in the correction
Revenue is traditionally recognized in the accounting records when
services are rendered
The proper format for a journal entry includes all of the following, except
the credit portion of the transaction is always first
The purpose of posting is to:
update the account balances in the ledger
The posting reference column in the ledger is:
used to record the journal and page number the transactions originated
The process that begins with recording business transactions into a journal and ends with a post-closing trial balance.
Accounting Cycle
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
If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error?
Correct answer: Incorrectly calculating the debit side of the trial balance
Adding to the PR column of the journal that account number of the ledger account that was updated from the journal.
Cross Referencing
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
The informal listing of the ledger accounts and their balances in the ledger to aid in providing the equality of debits and credits is the journal
Trial Balance
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
A running balance is maintained in the ledger after each transaction is posted.
True
The order of the flow of accounting data is to (1) record in a 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
Transactions are listed in chronological order in the journal.
True
The proper sequence used in recording a business transaction is
analyze, journalize, post, record the balance, and the reference column