Account201 Ch.2

Increase

Revenues cause retained earnings to

Journal

A chronological record of all economic events affecting a firm are recorded in a _______

Chart of accounts

A list of account names used to record transactions of a company

External Transactions

External transactions are transactions the firm conducts with a separate economic entity

True

For each journal entry, debits must be equal to credits

Credit

In a double-entry accounting system, the ____ represents the right side of the account.

Debit

In a double-entry accounting system, the _____ represents the left side of account.

Increases

Net Income ________ retained earnings

Credit

Revenue accounts are increased by _____.

Journal Entry

describes the format for the recording a transaction

Internal Transactions

events that affect the financial position of the company but do not include an exchange with a separate company or individual.

Account

summarizes all transactions related to a particular item over a period of time

Posting

the process of information from the journal to the ledger