Chapter Three: The Accounting Information System

1. Describe the steps in the accounting cycle.

2. What are accounting transactions?

3. What is the double-entry system of accounting for transactions?

4. How is the accounting cycle different than the operating cycle?

5. What is articulation of financial statements?

6. What are the steps to record and report a transaction in the financial statements?

7. Define: General Journal, General Ledger, Chart of Accounts, and Trial Balance

8. What are three limitations of the trial balance?

9. What is a debit? What is a credit?

10. What are the differences between the opening trial balance, the end of the year trial balance, the adjusted trial balance, and the post-closing trial balance. Of these, which two would be identical?

11. What do the parts of a t-account tell the reader? Parts: Opening balance, activity, ending balance, adjustments, adjusted ending balance, closing entry, post-closing balance.