Accounting Interactive

T-Accounts

100

The company purchases equipment with its cash. What happens to the assets, liabilities, and Owner's equity?

Asset: Increase

Liabilities: No effect

Owner's Equity: No effect

200

The owner invests personal cash into the business. What happens to the assets, liabilities, and Owner's equity?

Assets: Increase

Liabilities: No effect

Owner's Equity: Increase

300

The company receives cash from a bank loan. What happens to the assets, liabilities, and Owner's equity?

Assets: Increase

Liabilities: Increase

Owner's Equity: Effect

400

The company repays the bank that had lent money to the company. What happens to the assets, liabilities, and Owner's equity?

Assets: Decrease

Liabilities: Decrease

Owner's Equity: No effect

500

What are the four questions for analyzing a transaction within a T-Account?

1. Which accounts are affected?

2. How is each account classified?

3. How is each classification changed?

4. How is each amount entered in the accounts?

Terms

100

T-Account

An accounting device used to analyze transactions.

200

Chart of Accounts

A list of accounts used by a business.

300

Accounts Payable

Amounts to be paid in the future for goods or services already purchased.

400

Normal Balance

The side of an account that is increased is the normal balance of that account.

500

Define debit and credit...

Debit: an amount recorded on the left side of the account.

Credit: an amount recorded on the right side of the account. 

Debit Vs Credit

100

What is the normal balance for Land?

Asset. 

200

What side is debit on in a T-Account?

Left

300

Should the $400 entry to Mary Smith, Capital be a debit?

No.

400

Should a sale on account be recorded as a debit or a credit?

Credit

500

Generally, when revenues are involved in a transaction, a revenue account will be...? 

Credited.

Asset or Liability

100

Is cash an asset or a liability?

asset. 

200

Is prepaid insurance an asset or a liability?

Asset

300

Is Accounts Payable an asset or liability?

Liability 

400

What is the summary of assets and liabilities known as?

Balance Sheet.

500

Mike financed a new car for $11,239. However he recently robbed a bank for $17,550. What is the Positive/Negative amount in his assets?

$6,311

Miscellaneous

100

The word "accounting," comes from which country?

A.) United Kingdom

B.) Italy

C.) France

D.) United States

C.) France

200

The FBI employs how many accountants on estimate?

A.) 550

B.) 2,000

C.) 12,350

D.) 1,600

B.) Around 2,000. 

300

What origin are the words debit and credit from?

Latin. (Debit: "He owes," Credit: "He trusts.")

400

Which of these products did a young accountant invent?

A.) Pencil Sharpener 

B.) Gatorade

C.) Shopping Carts

D.) Bubblegum

D.) Bubblegum

500

For what event do accounts track the ballots for?

A.) The Emmys

B.) The Oscars

C.) America's Got Talent

D.) Kentucky Derby

B.) The Oscars