Chapter 2, Problem 17Q

(a)

To determine

Recording in the process of Accounting:

The process of accounting can be defined as a series of activities, which are initiated at the opening of a transaction and accomplished with the closing of books. The series of activities involves identification, recording, and communication. The first step in the recording process is analyzing the effect of each transaction on the accounts. The accounts are identified for debit and credit. The second step in the recording process is to record the information related to the transaction in a journal. The last step in the process is to post the information recorded in the journal to the respective account in the ledger.

To define: A ledger.

(b)

To determine

To define: A chart of accounts and discuss its importance.