The Accounting Process

PART-A
Brief Questions
3rd Part

17.What is transactions?
Ans:The economic events of an enterprise that are recorded by accountants.

18.What is Account?
Ans:A record of increases and decreases in specific asset, Liability, or owner's equity items.

19.What is Chart of accounts?
Ans:A list of accounts and the account numbers that identify their location in the ledger.

20.What is Compound entry?
Ans:A journal entry that involves three or more accounts.

21.What is Credit ?
Ans:The right side of an account.

22.What is Debit ?
Ans:The left side of an account.

23.What is Double-entry system?
Ans:A system that records in appropriate accounts the dual effect of each transaction.

24.What is Journal?
Ans:An accounting recorded in which truncations are initially recorded in chronological order.