Chapter 3 Key Terms HW

Chapter 3 Key Terms  Cost principle- that a purchased asset should be recorded at its actual cost.  Cross-reference- The ledger account number in the Post. Ref. column of the journal and the journal page number in the Post. Ref. column of the ledger account.  General ledger- A book or file containing the activity (by accounts), either manual or computerized, of a business.  Journal- The book in which a person makes the original record of a business transaction; commonly referred to as abook of original entry.  Journalizing- The process of recording a business transaction in a journal.  Ledger account- A complete record of the transactions recorded in an individual account.  Posting- The process of transferring figures from the journal to the ledger accounts.  Source documents- Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place.  Two-column general journal- A general journal in which there are two amount columns, one used for debit amounts, and one used for credit amounts.