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Accounting terms
Question | Answer |
---|---|
Accounting | process of tracking financial activities and summarizing them. |
Accounting Cycle | begins with the collection of financial data and ends with reports |
Journal entries | chronological record of financial activity stored in a book or original entry called general ledger |
General Ledger | what accounts are stored in (assets, liabilities, equity, revenue and expenses) |
Posting | the process of copying data from the general journal to each general ledger account |
Why are adjusting journal entries at the end of a cycle? | Because some expenses have been estimated, and need to be corrected (taxes), while others are more efficiently recorded at the end of the cycle (depriciation) |
Prepaid Advertisements is what | Assets |
Unearned Revenue | Liability |
Prepaid Insurance | Assets |