Topic 2 - Accounting Process 2

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9 Terms

1
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What is a ledger?

a book/collection of financial accounts

2
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DEB meaning

double-entry bookkeeping

3
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What is the duality concept?

every transaction has two effects.

4
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Mnemonic D.E.A.D. meaning

Debit for Expenses, Assets, Distributions.

5
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GL/NL meaning

General (Nominal) Ledger

6
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What is the trial balance (TB)?

A list of nominal ledger balances shown in debit and credit columns

7
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What is an arbitrary suspense account?

Created when debits and credits do not equal to “plug the gap”

8
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How do you reduce the suspense balance to zero?

By making corrective journal entries

9
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What are post-TB adjustments?

Items not dealt with in the NL when the TB was drawn up (e.g. late invoices received after the accounts were balanced)