| A | B |
|---|
| Ledger | A group of accounts. |
| General Ledger | A ledger that contains all accounts needed to prepare financial statements. |
| Account Number | The number assigned to an account. |
| File Maintenance | The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. |
| Opening an Account | Writing an account title and number on the heading of an account. |
| Posting | Transferring information from a journal entry to a ledger account. |
| Business Entity | Financial information is recorded and reported separately from the owner's personal financial information. |
| Going Concern | Financial statement are prepared with the expectation that a business will remain in operation indefinitely. |
| Objective Evidence | A source document is prepared for each transaction. |
| Unit of Measurement | Business transactions are stated in numbers that have common values, that is, using a commmon unit of measurement. |
