Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter.
______________________Event
______________________External event
______________________Internal event
______________________Transaction
______________________Source document
______________________Account
______________________Chart of accounts
______________________General ledger
_______________________Debit
_______________________Credit
_______________________Double-entry system
_______________________Journal
_______________________Posting
_______________________Journalizing
_______________________General journal
_________________________Trial balance
1. A numerical list of all accounts used by a company.
2. A list of each account and its balance at a specific point in time; used to prove the equality of debits and credits.
3. A happening of consequence to an entity.
4. An entry on the right side of an account.
5. An event occurring entirely within an entity.
6. A piece of paper, such as a sales invoice, that is used as the evidence to record a transaction.
7. The act of recording journal entries.
8. An entry on the left side of an account.
9. The process of transferring amounts from a journal to the appropriate ledger accounts.
10. An event involving interaction between an entity and its environment.
11. The record used to accumulate monetary amounts for each individual asset, liability, revenue, expense, and component of stockholders’ equity.
12. A book, a file, a hard drive, or another device containing all of a company’s accounts.
13. A chronological record of transactions.
14. Any event, external or internal, that is recognized in a set of financial statements.
15. The journal used in place of a specialized journal.
16. A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.