chapter 16 - GL and closing exam 1

Chart of Accounts

listing of all general ledger accounts + brief description, like course catalog

General Ledger

“ending balance” financial data for every asset, liability, equity, revenue, and expense GL accounts, like a transcript

Journals

individual JE activity grouped by coming from a similar source/cycle, like canvas gradebook

Sub-Ledger

individual JE activity for one GL account broken into sub-accounts, like canvas gradebook split by tests/assignments/quizzes

Specialized Journal

records large numbers of repetitive debits/credits

General Journal

records infrequent/non-routine journal entry actions

Close Process

Resolve known errors, adjust cash balance when performing bank reconciliation, accruing for employee payroll, booking journal entries for estimates, clear suspense GL accounts

Adjusting entries

usually manual, can be automated for depreciation

Closing within a system

after all adjusting entries are made, reviews have been performed, and adjusting trial balances balance, period is “closed” and statements can be generated

Closing entries

programmed to occur in AIS automatically

Audit Trail

traceable path of a transaction from a point of origin through to its final output, detective control

XBRL

designed for use in communicating context of finance data, creates tags for each item

Validity Checks

ensure that data imputed exists in other transactions or master data

Field/Format Checks

ensure that data is input in the proper format

Zero-balance Checks

verify that transaction zeros out

Completeness Check

ensures all pertinent data is entered in required fields before transaction can be saved

Sign Checks

require that data is - or + if expected

Limit Checks

won’t allow transaction to proceed when a transaction exceeds a certain $ threshold