Chapter 2: The Recording Process

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  1. Account
    A record of increases and decreases in specific asset, liability, or owner's equity items.
  2. Chart of Accounts
    A list of accounts and the account numbers that identify their location in the ledger.
  3. Compound Entry
    A journal entry that involves three or more accounts.
  4. Credit
    Right side of an account- CR.
  5. Debit
    left side of an account- DR.
  6. Double-entry Sytem
    A system that records in appropriate accounts the dual effect of each transaction.
  7. General Journal
    The most basic form of journal.
  8. General Ledger
    record containing all accounts used by a company. Example: asset, liability, and owner's equity accounts
  9. Journal
    complete record of each transaction in one place recorded in chronological order
  10. Journalizing
    The recording of transactions in a journal.
  11. Ledger
    Entire group of accounts maintained by a company
  12. Normal Balance
    An account balance maintained by a company.
  13. Posting
    transferring journal entry info to the ledger
  14. Simply Entry
    A journal entry that involves only two accounts.
  15. T-account
    the basic form of an account
  16. Three-Column Form of Account
    A form with columns for debit, credit, and balance amounts in an account.
  17. Trial Balance
    list of accounts and their balances at a point in time
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Chapter 2: The Recording Process
Description
2.1 Describe how accounts, debits, and credits are used to record business transactions 2.2 Indicate how a journal is used in the recording process. 2.3 Explain how a ledger and posting help in the recording process. 2.4 Prepare a trail balance.
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