Ch. 2 Smartbook
Describe a T-Account.
A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions.
The correct definition of an "account" includes which of the following?
A record of increases and decreases in a specific asset, liability, equity, revenue, or expense.
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.
An account is a record of increases and__________ in a specific asset, liability, equity, revenue or expense.
DECREASES
The business earns $700 of consulting revenue. How would these earnings affect the total equity of a business?
Revenues increase, so total equity is increased.
Which of the following would be considered a source document in an accounting system?
Sales receipt Purchase order Payroll records Checks
It is a book of original entry that includes a chronological record of all transactions that have occurred within a business during a period occurred
a journal
It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account
chart of accounts
It is a collection of all accounts with their activity and balances that exist in a business.
general ledger
The general ledger can be used to determine which of the following (select all answers which apply):
increases and decreases in all accounts in a business. which accounts are being used by a company and their balances at any given time. common and unique accounts used by a business.
It is a list of each account and its balance at any given time and is used to verify that debits = credits
trial balance