Normal Balances
Recording Transactions
Miscellaneous
Categories
Complete the sentence...
100
What is the normal balance of cash?
Debit
100
Jan purchased $300 worth of office equipment. Which accounts are effected?
Cash Office equipment
100

Which statement do you create to ensure debits equal credits at the end of the accounting period?

Trial balance

100

Which category is accounts receivable in?

Assets

100
For every debit there is a ...
credit
200
What is the normal balance of C. Frank, Withdrawals?
debit
200
Anna mailed an invoice for the work she completed for a customer. Which accounts will be debited and credited?
Accounts Receivable DR Revenue CR
200

Describe the difference between temporary and permanent accounts.

Temporary accounts are used to collect information that will be transferred to permanent capital accounts at the end of the accounting period. Permanent accounts are continuous from one accounting period to the next; balances are carried forward to the next period.

200

Which category is prepaid rent in?

assets

200

When finding the balance of a T account you...

subtract the smaller side from the bigger side and put the difference on the normal balance side of the account

300
True or false: When an account decreases on the debit side that means that that same side is the normal balance.
false
300
The owner paid salaries of his staff for the month. Which account is debited?
Salary Expense
300

If one side of a transaction involves a revenue account, can the other side involve the owner's capital account?

No, because revenue accounts increases Owner's Capital.

300

What category is accounts payable in?

Liability

300
Formatting is very important. You cannot forget to indent in the right places, put dollars signs, single lines to subtotal, and ...
double lines to indicate a total
400
The 3 account categories that would be increased by a credit are:
Expenses, capital, and revenue
400
Sam received an invoice in the mail from Telus showing how much money she owes for the past month of cell phone use. The due date of payment is in 2 weeks. Which accounts are debited and credited?
Telephone expense DR Accounts Payable CR
400

Why is it important to test for equality of debits and credits?

To keep a company's books in balance.

400

Bookkeeping Fees earned is in what category?

Revenue

400

Your favorite class is...

Accounting Fundamentals

500
Which 3 account categories increase on the debit side, and decrease on the credit side?
Assets, expenses, and withdrawals
500
Three years ago Tim Gore bought a $45,000 truck for his landscaping business. Tim decided to use the truck for his son to use for going back and forth from school from now on. Which accounts will be debited and credited and by how much?
T. Gore, Withdrawals DR $45,000 Truck CR $45,000
500

How do you record this entry?  On October 18 Rockport Advertising prepared an advertisement for Zip. Zip will pay Rockport’s $75 fee later.

Debit Advertising Expense $75 and credit Accounts Payable - Rockport Advertising $75.

500

How is owners equity broken down into categories?

capital, withdrawals, revenue, expenses

500
If my trial balance totals are not the same in the debit and credit column I know...
I did something wrong!
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