Chapter 2 quiz
Van Jones is the owner of a sole proprietorship. Van took $5,000 from the business for personal use. Which of the following accounts is debited?
Jones, Withdrawals
Credit
Right side of a T-account
Account
A detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period
Compound journal entry
A journal entry that is characterized by having multiple debits and/or multiple credits
Chart of accounts
A list of all accounts with their account numbers
Trial balance
A list of all accounts with their balances at a point in time
Journal
A record of transactions in date order
Which of the following statements is true of a trial balance?
A trial balance is a list of all accounts with their balances.
Which of the following statements is true of expenses?
Expenses decrease equity, so an expense account's normal balance is a debit balance.
A debit always means a decrease, and a credit always means an increase.
False
The higher the debt ratio, the lower the risk of default.
False
The Owner, Capital account is increased by a debit.
False
Debit
Left side of a T-account
Normal balance
Side of an account where increases are recorded
Capital
CR
Interest Payable
CR
Notes Payable
CR
Service Revenue
CR
Unearned Revenue
CR
Advertising Expense
DR
Land
DR
Office Supplies
DR
Utilities Expense
DR
Withdrawals
DR
Which of the following accounts is an asset?
Prepaid Expense
An accounting entry that is characterized by having multiple debits and/or multiple credits is called a ________ entry.
compound journal
Posting
Transferring amounts from the journal to the ledger
The normal balance of an account is the increase side of the account.
True
Which of the following is a liability account?
Unearned Revenue
Which one of the following account groups normally has a debit balance?
assets and expenses
Ledger
he record holding all the accounts of a business, the changes in those accounts, and their balances
The accounting process of transferring data from the journal to the ledger is called ________.
posting
