Accounting cycle (p. 93)
A series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information.
Audit trail (p. 94)
A chain of references that makes it possible to trace information, locate errors, and prevent fraud.
Balance ledger form (p. 102)
A ledger account form that shows the balance of the account after each entry is posted.
Chronological order (p. 93)
Organized in the order in which the events occur.
Compound entry (p. 99)
A journal entry with more than one debit or credit.
Correcting entry (p. 106)
A journal entry made to correct an erroneous entry.
General Journal (p. 93)
A financial record for entering all types of business transactions; a record of original entry.
General ledger (p. 102)
A permanent, classified record of all accounts used in a firm’s operation; a record of final entry.
Journal (p. 93)
The record of original entry.
Journalizing (p. 93)
Recording transactions in a journal.
Ledger (p. 102)
The record of final entry.
Posting (p. 102)
Transferring data from a journal to a ledger.
