What is a ledger?
A ledger is a record-keeping system that helps track financial transactions, such as purchases and expenses.
What is double entry accounting?
Double entry accounting is a bookkeeping method where every financial transaction is entered twice, once as a credit and once as a debit, to maintain balance.
What is a chart of accounts?
A chart of accounts is a list of all the accounts used in a ledger, typically categorized by type of transaction.
What is a general ledger?
A general ledger is the primary record of all financial transactions for a business, including assets, liabilities, revenue, and expenses.
What is a subledger?
A subledger is a secondary ledger that records specific types of transactions, such as accounts receivable or accounts payable.
What is an opening balance?
An opening balance is the starting balance of a ledger account at the beginning of a new accounting period.
What is a closing balance?
A closing balance is the final balance of a ledger account at the end of an accounting period.
What is a trial balance?
A trial balance is a statement that lists all the ledger accounts and their balances to ensure the total debits equal the total credits.
What is an error of omission?
An error of omission occurs when a transaction is completely left out of the ledger.
What is an error of commission?
An error of commission occurs when a transaction is recorded incorrectly in the ledger.
What is a transposition error?
A transposition error occurs when the digits in a number are accidentally flipped, resulting in an incorrect amount.
What is an error of principle?
An error of principle occurs when a transaction is recorded in the wrong type of account.
What is a posting error?
A posting error occurs when a transaction is entered correctly in the journal but is not recorded correctly in the ledger.
What is an adjusting entry?
An adjusting entry is a journal entry made at the end of an accounting period to update account balances and ensure accuracy.
What is an unadjusted trial balance?
An unadjusted trial balance is a statement that lists all the ledger accounts and their balances before any adjusting entries have been made.
What is a suspense account?
A suspense account is a temporary account used to hold transactions with unknown or incorrect amounts until they can be properly recorded.
What is bank reconciliation?
Bank reconciliation is the process of comparing a company's bank account records to its own records to ensure they match.
What is a bounced check?
A bounced check is a check that is not honored by the bank due to insufficient funds in the account.
What is a chargeback?
A chargeback is a transaction reversal initiated by the bank to return funds to a customer if a purchase is found to be fraudulent or unauthorized.
What is a return item fee?
A return item fee is a charge imposed by the bank when a check or transaction is returned unpaid.
What is a non-sufficient funds (NSF) fee?
A non-sufficient funds (NSF) fee is a charge imposed by the bank when there are not enough funds in the account to cover a transaction.
What is a processing error?
A processing error is an incorrect or delayed entry or transaction caused by a mistake in the bank's processing system.
What is a system outage?
A system outage is when the ledger or bank's online platform is temporarily not functioning or accessible.
What is a duplicate transaction?
A duplicate transaction is a transaction that is recorded twice in the ledger, resulting in an incorrect balance.
What is a corrupted file?
A corrupted file is a file that is damaged or distorted, making it unusable.
What is a backup file?
A backup file is a copy of the ledger's data that is saved to prevent loss of information in case of a system failure.
What is a system update?
A system update is a new version of the ledger's software that includes bug fixes or new features.
