Accounting 101-Chapter 3

A happening of consequence to an entity.

An event involving interaction between an entity and its environment

An event occurring entirely within an entity

Any event that is recognized in a set of financial statments

A piece of paper that is used as evidence to record a transaction.

A record used to accumulate amounts for each individual asset, liability, revenue, expense, and component and stockholder's equity.

A numerical list of all accounts used by a company

A book, a file, a hard drive, or another device containing all of the accounts.

An entry on the left side of an account.

An entry on the right side of an account.

A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.

A chronological record of transactions

The process of transferring amounts from a journal to the ledger accounts.

The act of recording journal entries

The journal used in place of a specialized journal.

A list of each account and its balance; used to prove equality of debits and credits.