Financial Accounting Chp. 2
Terms in this set (25)
The difference in dollars between the total debit footing and the total credit footing of an account. Also called account balance.
Chart of Accounts
The list of account numbers and titles.
The process of assigning transactions to the appropriate accounts.
An entry that has more than one debit or credit entry.
The exchange price associated with a business transaction at the point of recognition.
The practice of recording transactions at cost.
The right side of an account.
The left side of an account.
The accounting system in which each transaction is recorded with at least one debit and one credit, so that the total dollar amount of debits and the total dollar amount of credits equal each other.
Working totals of columns of numbers. To foot means to total a column of numbers.
The simplest and most flexible type of journal.
The book or file that contains all of the company's accounts, arranged in the order of the chart of accounts.
A chronological record of all transactions; the place where transactions first enter the accounting records. Also called book of original entry.
Journal notations that record a single transactions.
A form of journal in which the date, the debit account, and the debit amount of a transaction are recorded on one line and the credit account and credit amount on the next line.
The process of recording transactions in a journal.
Ledger Account Form
The form of account that has four dollar amount columns: one column for debit entries, one column for credit entries, and two columns (debit and credit) for showing the balance of the account.
The usual balance of an account; also the side (debit or credit) that increases the account.
The process of transferring journal entry information from the journal to the ledger.
The determination of when a business transaction should be recorded.
Predetermined time at which a transaction should be recorded.
An invoice, check, receipt, or other document that supports a transaction.
The simplest form of an account, used to analyze transactions.
A comparison of the total of debit and credit balances in the accounts to check that they are equal.
The process of assigning a monetary value to a business transaction.