Vocabulary
Planning, recording, analyzing, and interpreting financial records.
What is accounting?
Paid cash for rent $950
(You must identify both debit and credit)
What is rent expense debit and cash credit?
The capital account is an owner's equity account.
What is true?
A list of account titles and numbers showing the location of each accounting.
What is a chart of accounts?
Tools used to show the effects of transactions and events on individual accounts.
What is are T-accounts?
Anything of value that is owned.
What is an asset?
Paid cash to owner for personal use $700
(You must identify both debit and credit)
What is withdrawal debit and cash credit?
Increases to liability accountants are recorded on the debit side.
What is false?
A ledger that contains all accounts needed to prepare financial statements.
What is a general ledger?
The 3 special columns in a journal.
What is sales credit, cash debit, and cash credit?
The practice of documenting a business's transactions and accounting records.
What is journalizing?
Receive cash from sales $1,200
(You must identify both debit and credit)
What is cash debit and sales credit?
The posting reference should always be recorded in the journal's post reference column before amounts are recorded in the ledger.
What is false?
510 Advertising Expense
520 Miscellaneous Expense
530 Rent Expense
540 Utilities Expense
The accounting number Gasoline Expense is assigned too.
What is 515?
Accounting system in which each transaction affects at least. two accounts and has at least one debit and one credit
What is double-entry accounting?
A form on which a brief message is written describing a transaction.
What is a memnorandum?
Sold services on account $200
(You must identify both debit and credit)
What is accounts receivable debit and sales credit?
The source document used when supplies bought on account are paid is a check.
What is true?
DAILY DOUBLE
A notation or identifier used to trace and link transactions between different accounting records, particularly between journals and ledger?
What is a posting reference?
A journal entry made to rectify an error in the financial records of a company.
What is a correcting entry?
The procedure for arranging accounts in a general ledger, assigning accounting numbers, and keeping records current.
What is file maintence?
Bought supplies on account $600
(You must identify both debit and credit)
What is supplies debit and accounts payable credit?
Examples of a source document include checks, sales invoices, memorandums, and letters.
What is false?
The steps of posting.
What is writing the date, journal page number, amount, and balance?
The account balance column in which the new account balance is recorded when the previous balance is a debit of $700 and the current entry is a credit of $200
What is debit?