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