Bookkeeping Cycle Test
An account entry on the left side is referred to as.
Explanation:
A debit is an entry on the account ledger's left side, whereas a credit is an entry on the account ledger's right side.
The goal of posting to a ledger is to apply deposits and charges to the correct account.
Explanation:
Moving debit and credit account balances from individual journals to their respective ledgers is known as posting. These ledgers are then used to construct a trial balance, which is then utilized to generate financial statements such as income statements, balance sheets, and other financial statements.
The task of recording, classifying, and summarizing financial transactions and events is known as accounting.
Explanation:
The practice of entering your company's financial transactions into organized accounts daily is known as bookkeeping. It can also refer to the various recording techniques available to businesses. For several reasons, bookkeeping is an important aspect of your accounting process.
An account entry on the right side is referred to as.
Explanation:
An entry on the right side of an account ledger is referred to as a credit.
After a business transaction, journal entries are made in the
Explanation:
The general journal is a book of original entries in which accountants and bookkeepers record unprocessed business activities in chronological order.
A ledger is a collection of financial records.
Explanation:
A ledger is a bookkeeping account or record that stores balance-sheet and income-statement activities. Cash, accounts receivable, investments, inventories, accounts payable, accrued expenses, and client deposits are all examples of accounting ledger journal entries.
After you've recorded your diary entries, you can upload them to:
Explanation:
A transaction should post to an account in the general ledger once it is logged as a journal entry. The general ledger shows how all accounting activities are broken down by account. It allows a bookkeeper to keep track of each account's financial situation and status.
After modifying journal entries have been recorded, this trial balance is established.
Explanation:
After all adjusting entries have been made to the relevant general ledger account, an adjusted trial balance is established. The adjusted trial balance is conducted to ensure that the financial statements are accurate and balanced after the period.
Before year-end adjusting journal entries, which trial balance contains all of the business accounts?
Explanation:
The adjusted trial balance lists all accounts in the general ledger that have nonzero balances, including adjusting entries. This trial balance is crucial in the accounting process because it aids in the detection of any computing errors made during the first five steps of the cycle.