Accounting chapter 2

transactions are first recorded in a ?

journal

which of the following account groups will decrease with debit ?

liabilities and revenue

which of the following account groups normally has a credit balance?

liabilities and revenues

a . business renders services to a client and issues a sales invoice. the amount will be collected from the customer at a later time. which of the following is true at the time the invoice is issued?

net income will increase

the account title used for recording a written promise that a customer will pay the business a fixed amount and interest by a certain date in the future is ____.

notes receivable

Satum, Inc. paid the rent for the current month in cash. which of the following accounts will be used to record the transaction.

rent expense

The account title used for recording the payment of rent in advance for an office building is ___.

repaid rent

what account is an equity ?

retained earnings , interest revenue

amounts earned from delivering goods or service to customers are called ____.

revenues

A shortened form of the ledger is called a ___?

t- account

which of the following represents the correct flow of accounting date?

transactions occur: source documents are prepared; transactions are analyzed; transactions are jouralized and posted

a business recieves $40,000 for services that will perform over the next four months. which of the following accounts is credited?

unearned revenue

a liability created when a business receives cash from customers in advance of providing service or delivering goods is called an ___.

unearned revenue

what account is a liability ?

unearned revenue

which of the following is true of trial balance?

a trial balance presents data in debit and credit format

which of the following is a liability account ?

accounts payable

when is a trail balance usually prepared?

before the financial statements are prepared

what account is an asset?

building, prepaid adverstings

a business makes a cash payment of $12,000 to a creditor. which of the following accounts is credited?

cash

which of the following statements is true of expenses?

expenses decrease equity, so an expense account normal balance is a debit balance