Accounting Ch 2
right side of an account.
The best interpretation of the word credit is the
in at least two different accounts.
The double-entry system requires that each transaction must be recorded
the debit side.
The left side of an account is
journalizing
The name given to entering transaction data in the journal is
side which increases that account.
The normal balance of any account is the
is increased with debits and decreased with credits.
The owner's drawings account
posting
The procedure of transferring journal entries to the ledger accounts is called
is the credit side.
The right side of an account is
chronological order.
Transactions in a journal are initially recorded in
it doesn't have to be cash, it could be another asset.
When an owner makes a withdrawal
left blank
When journalizing, the reference column is
compound entry.
When three or more accounts are required in one journal entry, the entry is referred to as a
simple entry
When two accounts are required in one journal entry, the entry is referred to as a
Liabilities
Which account below is not a subdivision of owner's equity?
Debits increase the owner's capital account.
Which of the following rules is incorrect?
Credits decrease assets and increase liabilities.
Which of the following statements is true?
lists the accounts and account numbers that identify their location in the ledger.
A chart of accounts for a business firm
Asset accounts
A chart of accounts usually starts with
Owner's Drawings account
A credit is not the normal balance for which account listed below?
Service revenue
A debit is not the normal balance for which account listed below?
owners capital account
A debit is not the normal balance for which of the following?
an increase in the asset.
A debit to an asset account indicates
a chronological record of transactions.
A journal provides
trial balance.
A list of accounts and their balances at a given time is called a(n)
general ledger accounts and balances.
A trial balance is a listing of
ledger
After transaction information has been recorded in the journal, it is transferred to the
a title, a debit side, and a credit side.
An account consists of
decrease liabilities and increase assets.
Debits
affect two or more accounts.
For the basic accounting equation to stay in balance, each transaction recorded must
Three
An account consists of ________ parts
A credit balance in an expense account
An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?
book of original entry.
Another name for a journal is
debit balances.
Assets normally show
