Chapter 4 The Bookkeeping Process Question and answers verified to pass 2024
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Course
Bookkeeping
Institution
Bookkeeping
Chapter 4 The Bookkeeping Process Question and answers verified to pass 2024 Chapter 4 The Bookkeeping Process... Week 3 - Double Entry Bookkeeping
accounting balance - correct answer The arithmetic sum of the additions and subtractions to an access through a given date.
accrual - correc...
accounting balance - correct answer ✔The arithmetic sum of the additions
and subtractions to an access through a given date.
accrual - correct answer ✔The process of recognizing revenue that has been
earned but not collected, or an expense that has been incurred but not paid.
accrued - correct answer ✔Describes revenue that has been earned and a
related asset that will be collected, or an expense that has been incurred and
a related liability that will be paid.
adjustment - correct answer ✔An entry usually made during the process of
"closing the books" that results in more accurate financial statements.
Adjustments involve accruals and reclassification. Adjustments are sometimes
made at the end of interim periods, such as month-end or quarter-end, as
well.
charge - correct answer ✔In bookkeeping, a synonym for debit.
chart of accounts - correct answer ✔An index of accounts contained in a
ledger.
closing the books - correct answer ✔The process of posting transactions,
adjustments, and closing entries to the ledger and preparing the financial
statements.
, credit - correct answer ✔The RIGHT side of an account. A decrease in asset
and expense accounts; an increase in liability, owners' equity, and revenue
accounts.
debit - correct answer ✔The LEFT side of an account. An increase in asset
and expense accounts; a decreases liability, owners' equity, and revenue
accounts.
entry - correct answer ✔A journal entry or a posting to an account
horizontal model - correct answer ✔a representation of the balance sheet
and income statement relationship that is useful for understanding the effects
of transactions and adjustments on the financial statements.
journal - correct answer ✔A chronological record of transaction.
journal entry - correct answer ✔A description of a transaction in a format that
shows the debit account(s) and amount(s) and credit account(s) and
amount(s).
ledger - correct answer ✔A book or file of accounts.
on account - correct answer ✔Used to describe a purchase or sale
transaction for which cash will be paid or received at a later date. A "credit"
transaction.
post - correct answer ✔The process of recording a transaction in the
respective ledger accounts using a journal entry as the source of the
information.
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