Types of Ledgers
What ledger is used to record all personal accounts of customers who owe the business money?
What is the Sales Ledger?
Which account is used to record money owed by customers for goods sold on credit?
What is the Accounts Receivable Account?
In double-entry accounting, each transaction affects how many accounts?
What is two accounts?
What system is used to record in the ledger?
The double-entry system
This ledger contains accounts of suppliers from whom the business has purchased goods on credit.
What is the Purchase Ledger?
What account would record the purchase of goods on credit?
What is the Purchases Account?
When recording a transaction, the amount debited must be equal to the amount ____.
What is credited?
What is the first step in recording a transaction in the ledger after reading it?
Identify the accounts affected
In which classification of ledger are accounts like revenue, expenses, and gains recorded?
What is the Nominal Ledger?
Which account shows withdrawals made by the owner for personal use?
What is the Drawings Account?
If a business purchases equipment on credit, which two accounts are affected?
What are the Equipment Account and the Accounts Payable Account?
What does credit or debit an account means?
Increase/decrease
Which ledger contains accounts related to the owner's equity, assets, and liabilities?
What is the General Ledger?
In which account do we record any outstanding debts or loans owed by the business?
What is the Liabilities Account?
In which book are the first entries of all transactions made before being transferred to ledger accounts?
What is the Journal?
Which side of the ledger is used to record an increase in liabilities?
What is the credit side?
What ledger would you use to track both asset and liability accounts?
What is the General Ledger?
What account would be credited when cash is received from a debtor?
What is the Accounts Receivable Account?
A debit to an expense account will ___ capital account.
What is decrease?
What accounts are affected when: Receive rent from C. Morris for $6000.
Rent Received and C. Morris