Solved

Match the Following Definitions and Terms by Placing the Letter

Question 208

Matching

Match the following definitions and terms by placing the letter that identifies the best
definition in the blank space next to the term.

Premises:

Responses:

Double-entry accounting

A list of accounts and their balances at a point in time.

Credit

Decrease in an asset,dividend and expense account,and increase in a liability,common stock and revenue account; recorded on the right side of a T-account.

Journal

A record containing all the accounts of a company and their balances.

Debit

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

Account

An accounting system where each transaction affects and is recorded in at least two accounts; the sum of the debits for each entry must equal the sum of its credits.

Trial balance

An increase in an asset,dividend,and expense account,and decrease in a liability,common stock, and revenue account; recorded on the left side of a T-account.

Posting

The process of transferring journal entry information to the ledger accounts.

Ledger

Identify and describe transactions and events entering the accounting system.

Source documents

A company's record of each transaction in one place that shows debits and credits for each transaction.

T-account

A representation of a ledger account used to understand the effects of transactions.