Chapter 2- The Recording Process

Question 0

What are the steps of the recording process?

Answer 0

1. Analyze each transaction
2. Journalize each transaction
3. Post to the ledger

Question 1

What is the double entry system?

Answer 1

For each debit entry there is an equal credit entry

Question 2

What is an importance of the journal?

Answer 2

Helps prevent or locate errors

Question 3

What is the ledger?

Answer 3

A group of accounts

Question 4

What is the primary purpose of a trial balance?

Answer 4

To prove mathematical equality

Question 5

What are the limitations of a trial balance?

Answer 5

There may still be errors even if total debits=total credits

Question 6

What is another name for the worksheet?

Answer 6

Working papers