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Accounting Information Systems
29 cards·by Blessing
Double Entry Accounting
A system which has every transaction recorded in two separate acccounts
Accounting Cycle
The time period between financial statements
Chart of Accounts
An organizational scheme used to classify accounts as assets, liabilities, or owner's
equity.
What is the recording process in the accounting cycle?
answer
What is credit (Double Entry Accounting)?
answerRight hand side of an account; recording a sum received
What is the adjusting process in the accounting cycle?
Keeps the accounting records up-to-date so that the financial statements will reflect all
the events of the period.
What is the closing process in the accounting cycle?
Prepares financial statements and prepares the accounting records for the next accounting
cycle
What is the accounting equation?
Assets = Liabilities + Owners Equity
What are the sides of a double entry account?
Debit and Credit
What is a Permanent Account?
n asset, liability, or owner's equity account which carries over from year to year
What is one benefit double entry accounting have when recording transactions?
each side balances when done correctly
What is a General Journal
the journal used to record both accounts debited and credited
What is a trial balance?
A listing of all general ledger accounts and their respective balances to ensure debits equal
credits.
What is a Journal Entry?
the action of recording an accounting event
What is a T-account?
A two sided chart which shows the debits and credits to any account
What side of the accounting equation would cash belong on?
Left;A=L+OE
What is a general ledger?
Collection of specific asset, liability, and owner's’ equity accounts from the chart of
accounts
What are transaction files?
A journal in a computer based transaction system.
What is a revenue deferral?
An adjusting entry that occurs when a company has been paid in advance for services to be
performed in a future period.
How would an increase in liabilities and decrease in OE be recorded?
credit to liabilities; debit to OE
What is a revenue accrual?
An adjusting entry that occurs when revenues are earned in one accounting period and payment
is received in a later period.
What is a master file?
A ledger in a computer-based transaction system.
What is GAAP?
GAAP is a set of rules concerning how a company reports its economic activity to shareholders
and other interested parties
What is posting?
The process of recording the appropriate part of a journal entry to the affected account.
What is Journalizing?
the process of recording a journal entry
What must an accountant do before preparing financial statements?
Trial Balance
What is the purpose of an accounting information systems?
It is designed to capture information regarding accounting events to prepare financial
statements
How is a computer accounting program more effective?
Less error prone
How many processes are in the accounting cycle?
3