Accounting Terminology
Listed Below Are Nine Technical Accounting Terms Introduced

question 12

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter:
(A.) The accounting record in which transactions are initially recorded.
(B.) A concept designed to avoid overstatement of the financial strength of a company.
(C.) A schedule prepared to determine the equality of the debit and credit amounts in the ledger.
(D.) An amount entered in the right side of a ledger account.
(E.) The sequence of procedures involved in recording transactions, processing the information in the accounting system, and summarizing the information in the form of financial statements.
(F.) The accounting record that contains a separate account for each type of asset and liability, and for each element of owners' equity appearing in the balance sheet.
(G.) The system of accounting in which every business transaction is recorded by equal dollar amounts of debit and credit entries.
$$\begin{array} { | l | l | l | } \hline \text { Matching principle } & \text { Debit } & \text { Trial balance } \\\hline \text { Double-entry } & \text { Credit } & \text { Joumal } \\\hline \text { Accounting cycle } & \text { Ledger } & \text { Conservatism } \\\hline\end{array}$$

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Definitions:

Condensed Income Statement

A simplified income statement that presents only key revenue and expense items, ignoring detailed breakdowns.

Discontinuance

The act of ending or terminating a business operation or the production of a product line.

Current Year

The present calendar or fiscal year in which a company operates and reports financial transactions.

Opportunity Cost

The benefit foregone by choosing one alternative over another.