Accounting key terms Chapters3,4

What is a ledger?

• A group of accounts

• A single account

• A financial statement

• A journal entry

What is a general ledger?

• A ledger that contains all the accounts needed to prepare financial statements

• A ledger that contains only cash accounts

• A ledger that contains only expense accounts

• A ledger that contains only revenue accounts

What is an account number?

• The number assigned to the account

• The number assigned to the ledger

• The number assigned to the journal

• The number assigned to the financial statement

What is file maintenance?

• The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current

• The procedure for closing accounts

• The procedure for opening accounts

• The procedure for auditing accounts

What is opening an account?

• Writing an account title and number on the heading of an account

• Closing an account

• Auditing an account

• Deleting an account

What is posting?

• Transferring information from a journal entry to a ledger account

• Transferring information from a ledger account to a journal entry

• Transferring information from a financial statement to a ledger account

• Transferring information from a ledger account to a financial statement

What is a correcting entry?

• An entry made to correct an error that is discovered after posting is completed

• An entry made to correct an error before posting is completed

• An entry made to correct an error in a financial statement

• An entry made to correct an error in a journal entry

What is proving cash?

• Determining that the amount of available cash agrees with the balance of the cash account

• Determining that the amount of available cash agrees with the balance of the revenue account

• Determining that the amount of available cash agrees with the balance of the expense account

• Determining that the amount of available cash agrees with the balance of the ledger account

A special journal used only to record sales of merchandise on account

What is selling merchandise to the final use