Five Account Types
Which type of account would cash, inventory and short-term investments be part of?
Assets
How many steps are there in the accounting cycle?
Nine
This type of credit requires an application and an annual credit fee and annual renewal
Credit Card
Which type of journal is used to record the sales of merchandise on credit?
Sales Journal
Currency, coins, checks, money orders, and funds on deposit in a bank are all defined as
Cash
Which type of account would rent, salaries and supplies be part of?
Expenses
Analyze transactions is which step in the accounting cycle?
Step 1
This type of credit is mostly used with small businesses or service professionals and grants credit based on personal judgement
Open Account Credit
Which type of journal is used to record all disbursements of cash?
Cash Payment Journal
What is the fundamental accounting equation
Assets=Liabilities+Owner's Equity
Which type of account would retained earnings, preferred stock and common stock be part of?
Owner's Equity
Posting data about transactions is which step in the accounting cycle?
Step 3
This type of credit charges a discount of 1.5-4% per charge, funds are treated as cash by the business
Bank Credit
Which type of journal is used to record cash received from all sources?
Cash Receipts Journal
In double-entry T accounting, which side are debits listed on and which side are credits listed on
Debits: Left, Credits: Right
Which type of accounts have a normal balance of debit?
Assets and Expenses
Posting Financial Statements is which step in the accounting cycle?
Step 5
This type of credit allows the business to collect payment owed directly from the customer
Business Credit
Which type of journal is used to record all transactions and all adjusting and closing entries?
General Journal
Which financial report lists the inflow and outflow of revenues and expenses?
Statement of Owner's Equity
Which type of accounts have a normal balance of credit?
Liabilities, Revenues and Owner's Equity
Interpreting Financial Information is which step in the accounting cycle?
Step 9
This type of credit is treated as accounts receivable paid by the credit issuer
Credit Card
Which type of journal is used to record all purchases of merchandise made on credit?
Purchase Journal
Which financial report lists assets, liabilities and owner's equity?
Balance Sheet