Chapter 1
What Is Accounting?
The process of planning, recording, analyzing, and interpreting financial information.
A list of accounts used by a business.
Chart of accounts
A form for recording transactions in chronological order.
Journal
A group of accounts.
A bank account from which payments can be ordered by a depositor.
Checking account.
Anything of value that is owned.
Asset
An amount recorded on the right side of an account.
Credit.
The recording of debit and credit parts of a transaction.
Double-entry accounting
The number assigned to an account.
Account Number
A check that cannot be processed because the maker has made it invalid.
Voided check.
A withdrawal decreases the owner's equity.
True or False?
TRUE!!!
BONUS QUESTION:
Where does Mrs. Jakich love to go?
THE BEACH!!!
The source document for all cash payments is a sales invoice.
True or false?
FALSE
BONUS QUESTION!!!
What is Mrs. Jakich's first name?
KAREN!!!
Because cash transactions occur more frequently than other transactions, there is more chance for making recording errors affecting cash.
T or F?
TRUE
What 2 things increase? Received cash from owner as an investment.
Cash and Owner's equity.
An accounting device used to analyze transactions.
T-account.
When a journal page is full, the full page should be proved before a new page is started.
True or false?
TRUE!!!
If an error in posting is made but not discovered until additional postings have been made to the account, the correct posting should be made on the next available line in the correct account.
T or F?
True.
The source document for an electronic funds transfer is a check number.
T or F
True
What 2 things increase or decrease? Received cash on account.
Cash goes up-Accounts Receivable goes down
Decreases in any liability account are shown on a T account’s (A) debit side (B) credit side (C) right side (D) none of these.
A: Debit Side.
A business form giving written acknowledgment for cash received.
Receipt.
The asset division accounts for Delgado Web Services are numbered in the 200s.
T or F
False!!!
A petty cash report is completed at the end of each business day.
T or F?
False.