Acct Chapter 2

a shortened form of the ledger is called a

T account

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 is provided in a typical chart of accounts?

account number

a business makes a cash payment of $12,000 to a supplier for supplies purchased two weeks earlier. Which of the following accounts is debited?

accounts payable

a business renders services to a customer for $2,600 on account. Which of the following accounts is debited?

accounts receivable

which of the following sequences states the order in which accounts are listed on a trial balance

assets --> liabilities --> equity

a business collects cash from a customer for services that were performed one month earlier. Which of the following accounts is debited?

cash

which of the following accounts decreases with a credit?

cash

For expenses, the category of account and its normal balance is

equity and a debit balance

which of the following statements is true of owner's capital account?

it is an equity account that has a normal credit balance

transactions are first recorded in a

journal

after initially recording a transaction, the data is then transferred to the

ledger

which of the following account groups will decrease with a debit?

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 owner withdrew cash from the business. Which of the following accounts is debited?

owner, withdrawals

Which of the following is an asset account?

prepaid expense

journalizing a transaction involves

recording the data only in the journal

_____ represents a debt owed for renting a building currently

rent payable

which of the following is a source document that provides the evidence and data for accounting transactions?

sales invoice

which of the following sequences is the normal sequence of flow of accounting data?

source document --> journal --> ledger