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Match the Following Definitions with the Appropriate Term

Question 55

Matching

Match the following definitions with the appropriate term

Premises:

Responses:

Source documents

Decrease in an asset, owner withdrawal and expense account, and increase in a liability, owner's capital and revenue account; recorded on the right side of a T-account.

Debit

A record containing all the accounts of a company and their balances.

Posting

An accounting system where each transaction affects and is recorded in at least two accounts; the sum of the debits for each entry must equal the sum of its credits.

Double-entry accounting

A company's chronological record of each transaction in one place that shows debits and credits for each transaction.

Ledger

An increase in an asset and expense account, and decrease in a liability, owner's capital, and revenue account; recorded on the left side of a T-account.

Journal

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Account

A representation of a ledger account used to understand the effects of transactions.

Credit

A list of accounts and their balances at a point in time.

T-account

The process of transferring journal entry information to the ledger accounts.

Trial balance

Verifiable evidence that transactions have occurred used to record accounting information.

Premises:

Source documents

Debit

Posting

Double-entry accounting

Ledger

Journal

Account

Credit

T-account

Trial balance

Responses:

Decrease in an asset, owner withdrawal and expense account, and increase in a liability, owner's capital and revenue account; recorded on the right side of a T-account.

A record containing all the accounts of a company and their balances.

An accounting system where each transaction affects and is recorded in at least two accounts; the sum of the debits for each entry must equal the sum of its credits.

A company's chronological record of each transaction in one place that shows debits and credits for each transaction.

An increase in an asset and expense account, and decrease in a liability, owner's capital, and revenue account; recorded on the left side of a T-account.

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.

A representation of a ledger account used to understand the effects of transactions.

A list of accounts and their balances at a point in time.

The process of transferring journal entry information to the ledger accounts.

Verifiable evidence that transactions have occurred used to record accounting information.

Correct Answer:

Premises:

Responses:

Source documents

Debit

Posting

Double-entry accounting

Ledger

Journal

Account

Credit

T-account

Trial balance