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Accounting terms

QuestionAnswer
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
Created by: atbmeg
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