1
Q
account
A
record of increases and decreases in a specific asset, liability, equity, revenue or expense item
2
Q
douple entry system
A
- each Transaction must affect at least two accounts
- A = L + E
- DR = CR
3
Q
journal
A
book of original entry, records transactions in chronological order
4
Q
ledger
A
contains the entire group pf accounts maintained by a company
5
Q
steps in recording process
A
- Basic Analysis
- equation Analysis
- debit-credit Analysis
- journalizing
-posting
-
6
Q
journalizing
A
entering Transaction data in the journal
7
Q
posting
A
process of transferring amounts form the Journal to the ledger accounts
8
Q
Trial balance
A
lists each account and his balance
9
Q
limitations of Trial balance
A
Trial balance may even balanced even when
- a Transaction is not journalized
- a correct Journal is not posted
- a Journal entry is posted twice
- incorrect amounts are used in journalizing and or Posting
- offsetting erros are made in recording the amount of a transaction
