Accounting Chapter 4

Ledger

A group of accounts. (p. 94)

general ledger

A ledger that contains all accounts needed to prepare financial statements. (p. 94)

account number

The number assigned to an account. (p. 94)

file maintenance

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. (p. 95)

opening an account

Writing an account title and number on the heading of an account. (p. 96)

posting

Transferring information from a journal entry to a ledger account. (p. 98)

proving cash

Determining that the amount of cash agrees with the balance of the Cash account in the accounting records. (p. 107)

Correcting Entry

An additional journal entry made to correct an incorrect journal entry. (p. 109)