4. Answer the following questions.

1. What is GL?

2. What is the first thing you should always look for when you examine a GL?

3. What period does a report typically cover?

4. What should an accountant do to get the full story about an account?

5. Why is it better to keep the GL reports together in one tab?

6. Why is it better to print out the GL before printing the financials?

5. Do you agree that gl is the heart of the accounting system? Think and say what other tools besides the gl are necessary for the accountant’s work. What are they for?

6. Make words from the jumbled letters and match them to the definitions on the left.

1. tprero 2. raegenl derelg 3. fircetetaci fo igirno 4. syad tfare hsitg 5. charemnt nbka 6. ilbl fo hcenexga 7. srdneoe 8. areodvhe

transfer a bill or cheque by signing it on the back; type of bank that specializes in international trade and finance; document that shows where goods were made; document that shows each item in the Chart of Accounts; number of days within which a bill of exchange must be paid after presentation; regular cost of running a company, e.g. rent; order to a bank to pay a sum of money on a given date; h. account of, statement about something.

7 . Posting to a General Ledger Quiz. Match the items in the left and right columns. Then turn to page 153 and check your answers.

Ledger Opening an account Revenue and Expenses Posting File Maintanence Account Number Assets and Liabilities and Owner`s Equities General Ledger

The number assigned to an account. The income Statements Accounts The balance sheet accounts. A ledger that contains all accounts needed to prepare financial statements. Writing an account title and number on the heading of an account. Transferring information from a jornal entry into a ledger account Agroup of Accounts The procedure for arranging accounts in a general ledger, assigning accounts number, and keeping records correct.

7. Match the words to the questions and complete a crossword. Do not make blanks between the words in word combinations.

CLOSING ENTRY REPORTING PERIOD PROFIT AND LOSS CLOSING

TEMPORARY LEDGERS TRIAL BALANCE PERMANENT LEDGERS SUMMARY ACCOUNT

GENERAL JOURNAL FOOTING BALANCING POST-CLOSING GOING CONCERN

Across:

1. This principle allows us to close and balance the ledger accounts.

3. This is the process of shifting the amounts from the revenue and expense accounts to the profit and loss summary account so that profit can be determined.

5 . The revenue and expense ledgers are the examples of this type of ledger account.

7. This is the journal that we use to record closing entries and the transfer of amounts from the drawings to the capital ledger.

10. This trial balance is prepared after balancing the ledger accounts and is the statement of financial position.

11. This is the principle that allows us to close and balance the ledger accounts.

12. This is prepared after footing as a means of checking to see if we have made mistakes with the recording process.

13. This is an entry in the General Journal that close the temporary ledgers and allows us to calculate the profit or loss for the business in the ledger accounts.

Down:

2. This ledger is where the revenue and expense ledgers are closed to.

4. This ledgers are opened for the life of the business and are reported in the statement of financial position.

6. The Profit and Loss ledger is the example of this type of account.

8. This is what we do to the ledger accounts before we prepare the trial balance.

9. We do this to the permanent ledgers and then produce a post-closing trial balance.