Journalizing
What is the purpose of a General Journal?
For all of the transactions that don't have a special journal to be recorded.
In the accounting equation which side is debit and which side is credit?
Credit - right
Debit - Left
What is a dividend?
Earnings of a business distributed to stockholders
What is a net worth statement?
The financial value of a person after paying off all of their liabilities.
What is a Cash Sale
A sale made only with cash
What is the Journal that is dedicated only to cash transactions?
Cash Receipts Journal
What is one account with a normal debit balance?
Cash
Supplies
Prepaid Insurance
Accounts Recievable
(If you name one I didn’t think of thats ok too)
What is declaring a dividend?
action by a board of directors to distribute corporate earnings to stockholders.
What is the equation for a personal net worth statement?
total assets - total liabilities = net worth
True or false:
Credit card and debit cards are not treated as cash sales
False
What Journal is used to record only sales of merchandise on account?
Sales Journal
What are two accounts with normal credit balances?
Accounts Payable
Sales
(Name one I didn’t think of and thats ok)
What is the group of people elected by stockholders to govern a corporation?
A board of directors
When statements are ruled, what is the standard practice for the last amounts to indicate that it is a total?
A double rule under the last amount
What is a cash discount on a sale called?
A Sales Discount
What are 3 steps for posting from a Sales Journal to Accounts Receivable ledger forms?
1. Write the date
2. Write the sales journal page in the post. ref. column.
3. Write the debit amount in the debit column of the customer account
4. Add up the debit column and write the new balance
5. Write the customer number in the post. ref. column of the sales journal
Name the whole accounting equation
Assets = Liabilities + Owners Equity
What is money called when it is earned by a business, but not distributed to stock holders?
retained earnings
What are personal net worth statements used for?
Showing your next worth in order to qualify for a loan.
What column of a Cash Receipts journal gets posted to an Accounts Recievable ledger?
Accounts Recievable Credit column
What is the only difference between an Accounts Receivable Ledger and Accounts Payable?
Accounts Payable has a Credit Balance column, while Accounts Receivable has a Debit Balance column.
What is it called when credit is more than debit?
Net loss
Why is only one account maintained for the investment of all owners of a corporation?
There’s so many stockholders that it would be virtually impossible to have every one of them have a separate account.
What is another name for a personal net worth statement?
personal financial data sheet
True or false:
The procedure for totaling, proving, and ruling a cash reciepts journal are the same as the procedures for a sales journal.
True