chapter 2 smartbook

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

trial balance

It is a list of each account and its balance at any given time and is used to verify that debits = credits

Accounts Receivable-debit fees earned-credit

The company completed engineering services for $27,600 on credit.

prepaid insurance-debit cash-credit

The company paid $11,400 cash for the premium on an 18-month insurance policy.

office equip-debit acc payable-credit

The company purchased $2,550 of additional office equipment on credit.

land-debit cash-credit note payable-credit

The company purchased land worth $63,000 for an office by paying $25,900 cash and signing a long-term note payable for $37,100.

a

Which of the following is the best definition of a source document in the accounting process? a. A source document identifies and describes transactions and is the basis for entering an event into the accounting system. b. A source document is used to determine who hired an employee that is assigned the duty of entering transactions into the accounting process. c. A source document shows all the information about the legal rights a company has in relation to when it should pay a bill.

list

a trial balance is a

asset

notes receivable is ....

asset

prepaid insurance is a what account?

asset

prepaid loan is an asset or liability or equity? `

coin, money order, check, checking account

things considered cash....

posting

to transfer journal information to a ledger.