Financial Accounting - Module 2
1. An individual accounting record of increases and decreases in specific
asset, liability, stockholders' equity, revenue or expense items.: Account
2. The system of collecting and processing transaction data and communicat-
ing financial information to decision-makers.: Accounting information system
3. Events that require recording in the financial statements because they affect
assets, liabilities, or stockholders' equity.: Accounting transactions
4. A list of a company's accounts.: Chart of accounts
5. The right side of an account.: Credit
6. The left side of an account.: Debit
7. A system that records the two-sided effect of each transaction in appropri-
ate accounts.: Double-entry system
8. The most basic form of journal.: General journal
9. A ledger that contains all asset, liability, stockholders' equity, revenue, and
expense accounts.: General ledger
10. An accounting record in which transactions are initially recorded in
chronological order.: Journal
11. The procedure of entering transaction data in the journal.: Journalizing
12. The group of accounts maintained by a company.: Ledger
13. The procedure of transferring journal entry amounts to the ledger ac-
counts.: Posting
14. The basic form of an account.: T-account
15. A list of accounts and their balances at a given time.: Trial balance
16. Accounting basis in which companies record, in the periods in which the
events occur, transactions that change a company's financial statements,
even if cash was not exchanged.: Accrual-basis accounting
17. Expenses incurred but not yet paid in cash or recorded.: Accrued expenses
18. Revenues for services performed but not yet received in cash or record-
ed.: Accrued revenues
19. A list of accounts and their balances after all adjustments have been
made.: Adjusted trial balance
20. Entries made at the end of an accounting period to ensure that the revenue
recognition and expense recognition principles are followed.: Adjusting entries
21. The difference between the cost of a depreciable asset and its related
accumulated depreciation.: Book value
22. Accounting basis in which a company records revenue only when it re-
ceives cash and an expense only when it pays cash.: Cash-basis accounting
23. Entries at the end of an accounting period to transfer the balances of
temporary accounts to a permanent stockholders' equity account, Retained
Earnings.: Closing entries
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1. An individual accounting record of increases and decreases in specific
asset, liability, stockholders' equity, revenue or expense items.: Account
2. The system of collecting and processing transaction data and communicat-
ing financial information to decision-makers.: Accounting information system
3. Events that require recording in the financial statements because they affect
assets, liabilities, or stockholders' equity.: Accounting transactions
4. A list of a company's accounts.: Chart of accounts
5. The right side of an account.: Credit
6. The left side of an account.: Debit
7. A system that records the two-sided effect of each transaction in appropri-
ate accounts.: Double-entry system
8. The most basic form of journal.: General journal
9. A ledger that contains all asset, liability, stockholders' equity, revenue, and
expense accounts.: General ledger
10. An accounting record in which transactions are initially recorded in
chronological order.: Journal
11. The procedure of entering transaction data in the journal.: Journalizing
12. The group of accounts maintained by a company.: Ledger
13. The procedure of transferring journal entry amounts to the ledger ac-
counts.: Posting
14. The basic form of an account.: T-account
15. A list of accounts and their balances at a given time.: Trial balance
16. Accounting basis in which companies record, in the periods in which the
events occur, transactions that change a company's financial statements,
even if cash was not exchanged.: Accrual-basis accounting
17. Expenses incurred but not yet paid in cash or recorded.: Accrued expenses
18. Revenues for services performed but not yet received in cash or record-
ed.: Accrued revenues
19. A list of accounts and their balances after all adjustments have been
made.: Adjusted trial balance
20. Entries made at the end of an accounting period to ensure that the revenue
recognition and expense recognition principles are followed.: Adjusting entries
21. The difference between the cost of a depreciable asset and its related
accumulated depreciation.: Book value
22. Accounting basis in which a company records revenue only when it re-
ceives cash and an expense only when it pays cash.: Cash-basis accounting
23. Entries at the end of an accounting period to transfer the balances of
temporary accounts to a permanent stockholders' equity account, Retained
Earnings.: Closing entries
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