41. A compound journal entry affects no more than two accounts.
42. Posting is the transfer of the information from each journal entry to the ledger.
43. Transactions are first recorded in the ledger.
44. The journal is known as a book of original entry.
45. A journal gives a complete record of each transaction in one place and shows the debits and credits for each transaction.
46. The journal is known as the book of final entry because financial statements are prepared from it.
47. A trial balance that balances is not proof of complete accuracy in recording transactions.
48. IFRS requires that companies report four financial statements with explanatory notes: balance sheet; income statement; statement of changes in equity, and statement of cash flows.
49. Generally, the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts: assets, liabilities, equity, revenues, and expenses.
50. The trial balance can serve as a replacement for the balance sheet, since debits must balance with credits.