The Recording Process

These flashcards cover key terms and concepts related to the recording process in accounting, as detailed in the lecture notes.

Business Transaction

An event that affects the financial position of a business and can be measured in monetary terms.

Journalize

The process of recording transactions in a journal.

Post

The act of transferring amounts from the journal to the ledger accounts.

Trial Balance

A list of accounts and their balances at a given time; used to prove that debits equal credits.

Adjusting Entries

Entries made at the end of an accounting period to allocate income and expenditure to the correct period.

Account

An individual accounting record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Debit

An entry on the left side of an account; increases assets and expenses, and decreases liabilities and owner's equity.

Credit

An entry on the right side of an account; increases liabilities, equity, and revenue, and decreases assets and expenses.

Double-entry Accounting System

An accounting system where each transaction affects two or more accounts, ensuring that the accounting equation remains balanced.

General Ledger

A complete set of accounts maintained by a company, including all asset, liability, owner's equity, revenue, and expense accounts.

Posting

The process of transferring amounts from the journal to the ledger accounts.

Unearned Revenue

A liability that represents money received for services not yet delivered.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities.

Salaries Expense

Costs incurred from compensating employees for their labor.

Service Revenue

Income earned from providing services to customers.