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