| A | B |
|---|
| Source document | Any business form that serves as the original source of information to show that a transaction has occured |
| Transposition error | reversal of numbers |
| Journalizing | recording entries in the journal |
| Principle of Objectivity | Requires objective evidence to support the value used in each transaction |
| An advantage of using a journal | All details of the transaction are recorded in one place |
| An advantage of using a journal | Journal presents a chronological history of all transactions |
| Journal | Chronological record of transactions |
| Addition or Subtraction error | When there is a difference of 1, 10, 100 or 1000 |
| Journal explanation | Include source document information |
| Indented | you can tell visually which is the credit entry because of this |
| Purpose of prenumbered source documents | prevent fraud; each numbered document must be accounted for |
| Source Documents | must be kept on file |
| Ledger | group of accounts |
| Opening entry | records the assets, liabilities and owner's equity when a business first begins operatiosn |
| PR column | should have a number in it if transaction is posted to journal |
| Accounting Cycle | a list of steps completed during the accounting period |
| Chart of Accounts | List of the accounts in the ledger and their account numbers |
| Posting | transferring entries from the journal to the ledger accounts |
