Chapter 2 Terminology

1

Identify transactions

2

Journalize entries

3

Post to ledger

4

Unadjusted trial balance

5

Adjusting entries

6

adjusted trial balance

7

financial statements

8

closing entries

9

post-closing trial balance

A chronological record of transactions

General Journal

Used to group similar types of repetitive entries

Special journal

Presents transactions by account. Transferring entries from journal to ledger is called posting

General ledger

Tracks detailed individual accounts that support a general ledger control account

Subsidiary Ledger

Verifies total debits equal total credits before adjusting entries

Unadjusted trial balance

Verifies balances after adjusted entries are posted, serves as the basis for financial statements

Adjusted trial balance

contains only permanent accounts after year end closing entries

Post-closing trial balance

Money was already paid or received in advance

Deferrals

The event or work has already happened, but no cash has changed hands yet

Accruals