Maya - Accounting Review

Transposition Error

when a bookkeeper manually enters data into a ledger, they may, by mistake, incorrectly transfer information from an invoice into a balance sheet.

General Journal

a book of original entry that provides a chronological record of all transactions, including the accounts debited and credited: where transactions are first recorded.

General Ledger

a ledger in which accounting data is posted from journals.

Accounting Cycle

the set of accounting procedures performed in each accounting period

Opening Entry

the journal entry to record the assets, liabilities, and owner's equity when a business first begins operations

Compound Entry

an entry that has more than one debit or credit

General Ledger

a ledger in which accounting data is posted from journals

HST Payable

the account used to record the amount of HST collected from customers

HST Recoverable

the account used to record the amount of HST paid on eligible purchases

Chart of Accounts

a list of all account names and numbers in the general ledger

Posting

the transfer of amount from journal to ledger

Audit

a periodic, systematic check of accounting records and procedures by an accountant

Balance-Column Ledger Account

a type of ledger account that provides a running balance on each line

Source Document

any business form that serves as the original source of information that a transaction has occurred. A source document must be prepared for every business transaction

Cash Sales Slip

a source document that provides the details of the sale and is prepared for all cash sales by a business

Sales Invoice

is the bill completed by the seller and given to the buyer as a record of a credit sale

Purchase Invoice

is the bill received by the purchaser as proof of a purchase on
account

Cheques Issued

cheques are issued by a business to make cash purchases and to pay bills

Cheque Received

cheques are received as payments for amounts owed or when customers buy something for cash

Endorsement

is the signature placed on the back of a cheque by the person or company depositing the cheque

Restricitve Endorsment

is an instruction on the back of a cheque to control what happens to the funds

Bank Credit Memo

A source document sent by a bank to indicate that money has been added to a customer's account

Bank Debit Memo

a source document sent by a bank to indicate that money has been withdrawn from a customer's account

Principle of Objectivity

requires that the accounting data should be free from any bias and should be verifiable (that is, it should provide objective evidence) to support the value used to record transactions