Chapter 3 | Beginning the Accounting Cycle
natural business year
a fiscal year that ends when that business naturally slows
journal entry
transaction that is recorded into a journal once it is analyzed
posting
transferring, copying, or recording of information from a journal to a ledger
calendar year
January 1 through December 31
transposition
accidental rearrangement of digits in a number
cross-referencing
adding to the PR column of the journal the account number of the ledger account that was updated from the journal
book of final entry
book that records information about business transactions from a book of original entry
book of original entry
book that records the first formal information about business transactions
slide
error that results in adding or deleting zeros in the writing of a number
interim reports
financial statements that are prepared for a month, quarter, or some other portion of the fiscal year
accounting cycle
for each accounting period, the process that begins with the recording of business transactions or procedures into a journal and ends with the completion of a post-closing trial balance
trial balance
informal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits
compound journal entry
journal entry that affects more than two accounts
general journal
listing of business transactions in chronological order; links on one page the debit and credit parts of transactions
fiscal year
one year starting on any date, including January 1
accounting period
period of time for which an income statement is prepared
four-column account
running balance account that records debits and credits and has a column for an ending balance
