UCB_UGBA102A_Topic02_Practice_Questions_Solns - Topic02...

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Topic02 Accounting System: Transaction Analysis Question 1. In a short sentence, define the following terms: a. Transaction represents an economic event that has a measurable effect on the financial condition of the enterprise. b. Account represents a device used to classify and summarize measurements of economic activity. c. Chart of Accounts is a master document maintained by the accounting department that lists all aproved accounts. d. General Ledger is a document that lists all the transactions affecting the enterprise organized by account. It may be used for determining the balances of a given account or the changes in those balances. e. Trial Balance is a listing of all accounts balances organized as debits or credits. It is used to determine whether the total debit amounts equals the total credit amounts. Question 2. In a short sentence, explain the difference between the following concepts: Transaction analysis is an input process that involves deciding what to record and how much whereas financial analysis is an output process that involves analyzing the financial statements to evaluate the performance of the enterprise.
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UCB_UGBA102A_Topic02_Practice_Questions_Solns - Topic02...

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