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Provided Below Is a List of Definitions and Terms

Question 155

Matching

Provided below is a list of definitions and terms. Match the term with correct definition.

Premises:

Responses:

Compound journal entry

A journal entry that affects at least three accounts.

T-account

A list of all accounts used by a company and the identification number assigned to each account.

Posting

The process of transferring journal entry information to the ledger.

Trial Balance

The most flexible type of journal, it can be used to record any kind of transaction.

Unearned revenues

A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.

Account

A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts.

General journal

A column in journals where individual account numbers are entered when entries are posted to ledger accounts.

Posting reference column

Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future.

Chart of accounts

A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.

Note receivable

A written promise from a customer to pay a definite sum of money on a specified future date.