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level: Vocabulary

Questions and Answers List

level questions: Vocabulary

Question	Answer
A device used to summarize all the changes that affect a single item on the accounting equation	Account
The difference between the debits and the credits recorded in an account	Account balance
The number assigned to an account in the ledger	Account number
An account that has debit and credit columns for entering changes in the account and a column for entering the new account balance after each debit or credit is posted to the account	Balance column account
A form that shows the financial position of a business on a specific date	Balance sheet
A journal in which transactions are first recorded	Book of original entry
A ledger to which amounts from the journal are posted	Book of secondary entry
A list of all the accounts used by a business entity	Chart of accounts
The procedure of arranging accounts in a general ledger, inserting and deleting accounts, and keeping records current	File maintenance
A book that contains all of the accounts needed to prepare the financial reports of a business entity	General ledger
A financial statement that reports the revenue, expenses, and net income or net loss of a business for a specific period of time.	Income statement
A group of accounts.	Ledger.
Writing the account title and number on the heading line of an account.	Opening an account
The first entry made in a general journal that opens the accounts in a new set of books.	Opening Entry
The process of determining whether the amount of cash, both on hand and in the bank, is the same amount that exists in the accounting records.	Proving cash
A proof (test) to show that the total debit balances in the ledger equal the total credit balances.	Trial balance