Term
| Accounting Information System |
|
Definition
| the system of collecting and processing transaction data and communicating it to users |
|
|
Term
|
Definition
| Electronic Data Processing Systems |
|
|
Term
|
Definition
| the process of identifying specific effects of economic events on the accounting equation |
|
|
Term
| when is revenue not recorded |
|
Definition
| when the service isnt performed yet |
|
|
Term
| explain revenue + expense effect on stockholders equity |
|
Definition
rev = increase
exp = decrease |
|
|
Term
|
Definition
| payments of expenses that benefit more than one accounting period are identified as assets |
|
|
Term
| summary of recording transactions |
|
Definition
1. analyzed in terms of its effect on what accts
2. two sides of equation must always be equal
3. cause of change on se must be indicated |
|
|
Term
| Normal Balance on Assets? |
|
Definition
|
|
Term
| Normal Balance on Liabilities? |
|
Definition
|
|
Term
| Normal Balance on Expense? |
|
Definition
|
|
Term
| Normal Balance on Revenue? |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| occurs when debit exceeds credit (vice versa for credit balance) |
|
|
Term
|
Definition
| debits must equal credits |
|
|
Term
|
Definition
| two sided effect of each transaction is recorded in accts |
|
|
Term
| Can assets have two entries? |
|
Definition
| Yes, bc it has no effect on left side of equation at that point (if they are a - and +) |
|
|
Term
| What does a journal show? |
|
Definition
1. discloses in one place the complete effect of transaction
2. provides chronological order for transactions
3. helps prevent errors as it directly compares debits and credits
*must have:
1. dates
2. accts and amounts to be debited or credited
3. explanation |
|
|
Term
|
Definition
shows entire group of accounts collectively
"general ledger" |
|
|
Term
| what is a chart of accounts? |
|
Definition
| list of all accounts firm has |
|
|
Term
| what is a trial balance sheet? |
|
Definition
lists accounts and their balances at any time
-proves math after "posting"
|
|
|
Term
| what are the limits of a trial balance sheet? |
|
Definition
1. trans may not have been journalized
2. correct journal not posted
3. posted 2x
4. incorrect amounts
etc |
|
|
Term
|
Definition
| procedure of transferring journal entry to ledger accounts |
|
|
Term
| order of records? overall.. |
|
Definition
source doc
journal
posting
ledger
trial balance |
|
|
