Chapter 2 FA

Record of all accounts and their balances

Identifies and describe transactions and events entering the accounting systme

Record of increases and decreases in a specific asset, liability, equity, revenue, or expense

A (-----) represents a ledger account and is used to show the effects of transactions

• Financial statement

• T-account

• Balance sheet

• Chart of accounts

List of all ledger accounts with an identification number

Demands the accounting equation remain in balance

Which accounts normally have a credit balance?

• Assets

• Liabilities

• Common stock

• Dividends

• Revenues

Which accounts normally have a debit balance?

• Assets

• Liabilities

• Common Stock

• Dividends

• Expenses

Recording transactions in a journal

• Journalizing

• Posting

Transferring journal entry information to the ledger

• Journalizing

• Posting