2015-08-21
426
I. Match the terms to their definitions.
| 1. Double–entry bookkeeping system | a) a ledger account for certain types of property (e.g. land and buildings, plant, investments, stock). |
| 2. Personal account | b) a collection of accounts of a similar type. Traditionally, a ledger was a large book with separate pages for each account; in modern systems they will usually consist of computer records. |
| 3. Dual aspect | c) an entry on the left-hand side of an account in double-entry bookkeeping that increases either the assets or the recorded expenditure of the organization keeping the book. |
| 4. Ledger | d) a ledger account that is not a personal account in that it bears the name of the concept, e.g. light and heat, bad debts, investments, etc. |
| 5. Nominal account | e) a bookkeeping system that only records one aspect of each transaction, i.e. either a debit or a credit. |
| 6. Debit | f) the principle that every financial event has an aspect that gives rise to a debit entry and an aspect that gives rise to a credit entry. |
| 7. Single-entry bookkeeping system | g) an account used to record transactions with persons, for example debtors and creditors. |
| 8. Real account | h) an account in a ledger that holds the records for all the transactions relating to the particular person (e.g. a debtor), thing (e.g. stock item), or activity(e.g. sales). |
| 9. Ledger account | i) an entry on the right-hand side of an account in double-entry bookkeeping, usually showing a sale or a liability. |
| 10. Credit | j) a method of recording the transactions of a business in set of accounts, such that every transaction has a dual aspect and therefore needs to be recorded in at least two accounts. This double aspect enables the business to be controlled because all the books of account must balance. |
