Accounting 1
The number assigned to an account.
Account Number
A group of accounts.
Ledger
A ledger that contains all accounts needed to prepare financial statements
General Ledger (GL)
Assets = Liabilities +
Owner's Equity
Transferring information from a journal entry to a ledger account.
Posting
When creating a new asset account, what number would the new three digit account number begin with?
1
In the chart of accounts, which asset account would be listed first, Accounts Receivable - XYZ, Company or Supplies.
Accounts Receivable - XYZ, Company.
Assets are listed in order of liquidity.
Journal entries made at the end of a fiscal period to bring account balances up-to-date?
Adjusting Entries
The financial statement that lists assets, liabilities, and owner's equity?
Balance Sheet
What is the normal balance of expense accounts?
Debit
What is the revenue account for a merchandising business?
Sales
What is the third division of the chart of accounts?
Owner's Equity Division
When making a correcting entry for an error, what source document is prepared describing the correction to be made?
Memorandum (Memo)
You sold $1000 in merchandise with credit terms of 2/10, n/30. What is the total discount in dollars?
20.00
What is the account that is only used for closing entries?
Income Summary
If the previous account balance is a debit and the current entry posted to the account is a debit, the current account balance will be a?
A debit balance.
After journalizing transactions, you post to the?
Ledger
Entries made at the end of a fiscal period to zero out temporary accounts?
Closing Entries
What is the formula for straight-line depreciation?
Cost - Salvage Value / Useful Life
What is the major benefit of using the general ledger over the journal to track account activity?
General Ledger provides an up to date account balance, Journal does not.
At the end of a fiscal period after adjusting entries, which financial statement is always prepared first.
Income Statement
If an account has a $600 credit balance and the current entry posting is a $250 debit, what will the new account balance be?
$350 credit balance
Sales - Cost of Goods Sold =
Gross Profit
Purchased a piece of equipment for $10,000; however, the actual value of the equipment was $12,000. This was a cash purchase. What accounts and dollar amount are used for this transaction?
Equipment debit $10,000
Cash credit $10,000
List the five divisions of the chart of accounts.
Assets
Liabilities
Owner's Equity
Revenue
Expenses