Chapter 1: Accounting Equation
The accounting equation is expressed as
What is A=L+OE?
Assets have a normal debit balance. (t/f)
What is true?
Preparing source documents for each transaction is an application of the accounting concept ____.
What is objective evidence?
The first digit in the account number 120 means that the account is in the ____ division of the general ledger.
What is asset?
A business form ordering a bank to pay cash from a bank account is a ____.
What is a check?
Property that has value and is owned by a business.
What are assets?
When supplies are bought on account, the account debited is ____.
What is supplies?
An account number in the journal's Post. Ref. column shows ____.
What is the accounting number for the account involved in the transaction?
A new account to be added between accounts 530 and 540 will be assigned the number ____.
What is 535?
Source documents are important because:
What is they provide objective evidence of a transaction occuring?
Debts owed to another business.
What are liabilities?
In a T account, the debit side is ____.
The entry to record receipt of cash from the owner as an investment is ____.
What is debit cash, credit capital account?
The procedure for transferring information from a journal entry to a ledger account is ____.
What is posting?
A customer paid with cash and the employee provided the incorrect amount of change.
What is a cash control problem?
The account that indicates revenue for a business.
What is sales?
The recording of debit and credit parts of a transaction is ____.
What is double-entry accounting?
When a business pays cash on account, a liability account is ____.
A business has the following expense accounts: 510, Advertising Expense; 520, Miscellaneous Expense; 530, Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is:
What is 540?
The account used to summarize the owner's equity in a business is ____.
What is the capital account?
Buy now, pay later.
What is on account?
If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is ____.
What is decreased?
A journal entry includes ____.
What is the debit and credit parts of a transaction?
When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are ____.
If cash is increased by $2,000.00 when the owner invests cash in the business, then capital is ____.
What is increased by the same amount?