Debit vs Credit
Does a debit or credit increase an Asset account?
Debit
Is "Cash" an asset, liability, or equity account?
Asset
True or False- There is at least one debit and one credit in each journal entry
What is True
Where do journal entries get posted after they are recorded?
General Ledger
What does a trial balance list?
All account balances
Does a debit or credit increase the Owner's Capital Account
Credit
What type of account is "Accounts Payable"
Liability
What is the journal entry for purchasing supplies on credit?
Debit Supplies, Credit Accounts Payable
What tool is commonly used to record debits and credits in each account?
T-Accounts
In which step of the accounting cycle is the trial balance prepared?
To ensure debits equal credits
How does a debit affect an expense account?
Is "Revenue" classified as an asset, liability, or equity account?
Equity
How do you record a customer payment received for services performed?
Debit Cash, Credit Service Revenue
Which account is posted to when receiving cash from a sale?
Cash and Revenue accounts
What is the purpose of the trial balance?
To ensure debits equal credits
When revenue is earned, which side is affected?
Credit
What type of account is "Prepaid Insurance"?
Asset
How do you record the payment of a utility bill that what paid on account?
What do you call the process of transferring journal entry amounts to ledger accounts?
Posting
If the trial balance does not balance, what does that indicate?
An error in journal entries or posting
What is the effect of a credit on an equity account?
Increases it
Which two accounts are hit when someone owes you money and will pay it at a later date?
Accounts Receivable & Revenue
What is the journal entry for receiving cash in advance of services performed?
Debit Cash, Credit Unearned Revenue
What is the result if the total debits and credits don't match in the ledger?
Error in posting or journal entries
What is the next step after preparing a trial balance