Chapter 2

decrease assets

A credit to Cash will:

Accounts Payable ( a liability) Note: review DEALOR

A debit is used to decrease which of the following accounts?

Utilities Expense is increased with a debit. (as are all other expenses)

A debit is used to increase which of the following accounts?

Chart of accounts.

A list of all account names used to record transactions of a company is referred to as a:

All accounts and their balances at a particular date.

A trial balance can best be explained as a list of

Posting

Account balances in the general ledger are updated for transactions through the process of:

Account.

All transactions related to a particular item over a period of time are summarized in a(n):

left-hand side

In the language of accounting, the term "debit" always means

Credit to Service Revenue.

Providing services to customers for cash would be recorded with a:

Increase total assets and total stockholders' equity

Providing services to customers for cash would have what effect on the accounting equation?

option c - accounts recievable

Providing services to customers on account for $100 is recorded as

Debit Equipment; Credit Cash.

The purchase of equipment with cash would be recorded as

Supplies (as an asset and a s an expense)

Which of the following accounts normally has a debit balance?

Total debit amounts should always equal total credit amounts.

Which of the following is true about a trial balance?

Paying advertising expense for the current month.

Which of the following transactions causes a decrease in stockholders' equity?

Repay amounts previously borrowed from the bank

Which of the following transactions causes a decrease in total liabilities?

Provide services to customers on account.

Which of the following transactions causes an increase in stockholders' equity?

Issue common stock in exchange for cash

Which of the following transactions causes an increase in total assets?

Purchase office supplies on account

Which of the following transactions increases total liabilities?

Analyze the impact of the transaction on the accounting equation.

Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits?