Chapter 2 quiz

Van Jones is the owner of a sole proprietorship. Van took​ $5,000 from the business for personal use. Which of the following accounts is​ debited?

Jones, Withdrawals

Credit

Right side of a T-account

Account

A detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period

Compound journal entry

A journal entry that is characterized by having multiple debits and/or multiple credits

Chart of accounts

A list of all accounts with their account numbers

Trial balance

A list of all accounts with their balances at a point in time

Journal

A record of transactions in date order

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 statements is true of​ expenses?

Expenses decrease​ equity, so an expense​ account's normal balance is a debit balance.

A debit always means a​ decrease, and a credit always means an increase.

False

The higher the debt ratio, the lower the risk of default.

False

The ​ Owner, Capital account is increased by a debit.

False

Debit

Left side of a T-account

Normal balance

Side of an account where increases are recorded

Capital

CR

Interest Payable

CR

Notes Payable

CR

Service Revenue

CR

Unearned Revenue

CR

Advertising Expense

DR

Land

DR

Office Supplies

DR

Utilities Expense

DR

Withdrawals

DR

Which of the following accounts is an​ asset?

Prepaid Expense

An accounting entry that is characterized by having multiple debits​ and/or multiple credits is called a​ ________ entry.

compound journal

Posting

Transferring amounts from the journal to the ledger

The normal balance of an account is the increase side of the account.

True

Which of the following is a liability​ account?

Unearned Revenue

Which one of the following account groups normally has a debit​ balance?

assets and expenses

Ledger

he record holding all the accounts of a business, the changes in those accounts, and their balances

The accounting process of transferring data from the journal to the ledger is called​ ________.

posting