bus chapter 2

what is on the debit side of the t chart?

ADE assets, dividends, and exspenses

True or false: Assets are claims (by creditors) against the company.

False

Which of the following statements is the best definition of the Chart of Accounts?

It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account.

Which set of accounts below would have a normal debit balance?

Which set of accounts below would have a normal debit balance?

Do you add prepaid accounts to assets or subtract?

add

what is an account?

is a record of increases and decreases in specific asset, liability, equity, revenue, or expense

A trial balance is a(n) (list/balance/chart) of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of account balances. Use one word for each blank.

list, credit

Transferring entries from the journal to the ledger is called (posting/preparing/journalizing)

posting

How do you find the debt ration?

total liabilities over totalassets

The general ledger can be used to determine which of the following

which accounts are being used by a company and their balances at any given time. increases and decreases in all accounts in a business. common and unique accounts used by a business.

Which of the following statements is (are) correct regarding the definition of a liability? (Check all that apply.) Multiple select question. A liability is an asset waiting to be received by a business. A liability is a thing of value owned by the business and is increased on the left side of a T-account. A liability can be settled by transferring assets or providing products or services to others. A liability is a debt owed by the business. A liability is a claim by creditors against the assets of a business.

A liability can be settled by transferring assets or providing products or services to others. A liability is a debt owed by the business. A liability is a claim by creditors against the assets of a business.

In defining a reporting period, which of the following statements is (are) correct? (Check all that apply.)

A one-year reporting period is known as the fiscal year. A reporting period is determined by the business. A reporting period can be one month, one quarter or one year.

Which of the following is the best definition of a source document in the accounting process?

A source document identifies and describes transactions and is the basis for entering an event into the accounting system.

what is on the credit side of the tchart?

CLRR common stock, liabilities, revenue, and retained earnings

Which of the following accounts would be considered an asset? (Check all that apply.) Multiple select question. Owner's capital Accounts payable Cash Accounts receivable Building Supplies

Cash Accounts receivable Building Supplies

Which of the following items would be considered "cash" and reflected in a company's Cash account? Notes Receivable Checks Coins Money orders Prepaid Insurance

Checks Coins Money orders

Cash can take many forms. From the lists of items below, choose the one which includes only items that would be defined as cash. Multiple choice question. Coins, accounts receivables, checks Checks, money orders, supplies Checks, coins, accounts payable Coins, checks, money orders

Coins, checks, money orders

Which set of accounts below would have a normal debit balance?

Expenses; Dividends; Cash

Given the descriptions below, which is (are) true regarding notes receivable? (Check all that apply.) Multiple select question. It is the promise of another entity to pay a specific sum of money on a specified future date. Notes receivable is classified as a liability. Another name for a note receivable is a promissory note. Notes receivable is classified as an asset.

It is the promise of another entity to pay a specific sum of money on a specified future date. Another name for a note receivable is a promissory note. Notes receivable is classified as an asset.

Which of the following are accurate statements regarding how to report or treat prepaid accounts? (Check all that apply.) Multiple select question. Over time, the expired portion of prepaid accounts is transferred from the asset account and reported as an expense. The unexpired portion of prepaid accounts are treated as assets. The expired portion of prepaid accounts is treated as liabilities. The expired portion of prepaid accounts is reported on the income statement as an expense.

Over time, the expired portion of prepaid accounts is transferred from the asset account and reported as an expense. The unexpired portion of prepaid accounts are treated as assets. The expired portion of prepaid accounts is reported on the income statement as an expense.

Which of the following statements is correct about prepaid expenses?

Prepaid expenses are also called prepaid accounts and are considered assets.

Which of the following would be considered a source document in an accounting system?

Sales receipt Purchase order Payroll records Checks

Which of the following financial statements report(s) the financial position of a business over a period of time?

Statement of retained earnings Income statement Statement of cash flows

Which of the following statements correctly explains how to prepare a trial balance?

Verify that the total debit balances equals the total credit balances. Compute the total of debit balances and the total of credit balances. List each account title and its amount from the ledger.

what is general ledger?

all accounts a company has

The Building account is a(n) (asset/liability/expense) account and is reported on the (left/right) side of the accounting equation

asset, left