ACCT 101 Test #1 Chapter 3

Steps of the Accouting Cycle

1. Analyze

2. Post

3. Journalize

4. Do adjusted trial balance

5. Prepare financial statements

6. Closing Entries

7. Post the closing entries

T Accounts

Quick replication of the general ledger that shows debits=credits

Analyzing Journal Entries

The process of reviewing and interpreting the information recorded in journal entries to ensure that transactions are accurately reflected in the accounts

Chart of Accounts

A listing of all accounts used by a company, organized into categories such as assets, liabilities, equity, revenues, and expenses

Purpose of the General Ledger

Keeps in one place all the information of the accounts …posting

Double Entry System

where each transaction affects at least two accounts, requiring that the total debits equal total credits to ensure the accounting equation balances