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Match the Following Terms with Definitions

Question 220

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Match the following terms with definitions.

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Responses:

Ledger

A list of accounts and their balances at a point in time.

Credit

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Account

A company's chronological record of each transaction in one place that shows debits and credits for each transaction.

T-account

An accounting system where each transaction affects and is recorded in at least two accounts; the sum of the debits for each entry must equal the sum of its credits.

Journal

A representation of a ledger account used to understand the effects of transactions.

Source documents

A record containing all the accounts of a company and their balances.

Double-entry accounting

Decrease in an asset, and expense account, and increase in a liability, contributed capital, retained earnings and revenue account; recorded on the right side of a T-account.

Trial balance

The process of transferring journal entry information to the ledger accounts.

Debit

An increase in an asset and expense account, and decrease in a liability, contributed capital, retained earnings, and revenue account; recorded on the left side of a T-account.

Posting

Verifiable evidence that transactions have occurred used to record accounting information.