Financial Accounting- Tools for Business Decision Making Chapter 3 Exam Bank Solution Manual
(Rated A+)
Account - Answers An individual accounting record of increases and decreases in specific asset, liability,
stockholders' equity, revenue or expense items.
Account information system - Answers The system of collecting and processing transaction data and
communicating financial information to decision-makers.
Accounting transactions - Answers Events that require recording in the financial statements because
they affect assets, liabilities, or stockholders' equity.
Chart of accounts - Answers A list of a company's accounts.
Credit - Answers The right side of an account.
Debit - Answers The left side of an account.
Double-entry system - Answers A system that records the two-sided effect of each transaction in
appropriate accounts.
General journal - Answers The most basic form of journal.
General ledger - Answers A ledger that contains all asset, liability, stockholders' equity, revenue, and
expense accounts.
Journal - Answers An accounting record in which transactions are initially recorded in chronological
order.
Journalizing - Answers The procedure of entering transaction data in the journal.
Ledger - Answers The group of accounts maintained by a company.
Posting - Answers The procedure of transferring journal entry amounts to the ledger accounts.
T-account - Answers The basic form of an account.
Trial balance - Answers A list of accounts and their balances at a given time.
(Rated A+)
Account - Answers An individual accounting record of increases and decreases in specific asset, liability,
stockholders' equity, revenue or expense items.
Account information system - Answers The system of collecting and processing transaction data and
communicating financial information to decision-makers.
Accounting transactions - Answers Events that require recording in the financial statements because
they affect assets, liabilities, or stockholders' equity.
Chart of accounts - Answers A list of a company's accounts.
Credit - Answers The right side of an account.
Debit - Answers The left side of an account.
Double-entry system - Answers A system that records the two-sided effect of each transaction in
appropriate accounts.
General journal - Answers The most basic form of journal.
General ledger - Answers A ledger that contains all asset, liability, stockholders' equity, revenue, and
expense accounts.
Journal - Answers An accounting record in which transactions are initially recorded in chronological
order.
Journalizing - Answers The procedure of entering transaction data in the journal.
Ledger - Answers The group of accounts maintained by a company.
Posting - Answers The procedure of transferring journal entry amounts to the ledger accounts.
T-account - Answers The basic form of an account.
Trial balance - Answers A list of accounts and their balances at a given time.
