Term
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Definition
| group of accounts with a common characteristic |
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Term
| customers' subsidiary ledger |
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Definition
| accounts receivable subsidiary ledger |
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Term
| creditors' subsidiary ledger |
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Definition
| accounts payable subsidiary ledger |
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Term
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Definition
| the general ledger account that summarizes subsidiary ledger data |
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Term
| List 4 advantages of a subsidiary ledger |
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Definition
| 1. they show in a sigle account transactins affecting one customer or creditor. 2. they free the general ledger of excessive details. 3. they help locate errors in individual accounts. 4. they make possible a division of labor. |
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Term
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Definition
| used in addition to the general journal to record similar types of transcations. Also reduces the time needed to complete the posting process. : ex:sales, cash receipts, purchases, cash payments. |
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Term
| considering special journals, where are correcting, adjusting and closing entries recorded? |
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Definition
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Term
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Definition
| records sales of merchandise on account. Do not record cash sales here!Do not record credit sales of other assets here (merch only). |
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Term
| how often do companies post to the sales journal |
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Definition
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Term
| how often do comapnies post to the general ledger? |
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Definition
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Term
| what does a check mark in the reference column of a special journal mean? |
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Definition
| that the daily posting to the subsidiary account has been made. |
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Term
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Definition
| record all receipts of cash |
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Term
| When is an account title entered in the 'Account Credited' column? |
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Definition
| 1. enter a subsidiary ledger account for accounts receivable transactions. 2. enter a general ledger account for transactions not shown in a special column. 3. otherwise no account is entered in this column |
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Term
| List three types of columns in the cash receipts journal |
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Definition
| 1. Debit. 2. Credit. 3. Debit and Credit combined. |
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Term
| List the two debit columns used on the cash receipts journal |
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Definition
| 1. Cash. 2. Sales Discounts. |
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Term
| List the 3 credit columns used on the cash receipts journal |
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Definition
| 1. Accounts receiable. 2. Sales Revenue. 3. Other Accounts. |
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Term
| List the 1 combined credit/debit column on the cash receipts journal |
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Definition
| Cost of Goods Sold and Inventory |
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