Chpt 1
Define Asset
Anything of value that is owned
Define Debit
an amount recorded on the left side of the account.
A form of recording transactions in chronological order.
Journal
Transferring information from a journal entry to a ledger account.
General Ledger
A form showing proof of petty cash payment.
Petty Cash slip
What is the accounting equation?
assets=liabilities+owners equity
Define Credit
An amount recorded on the right side of the account.
A business form giving written acknowledgment for cash recieved.
Receipt
A group of accounts.
Ledger
True or False.
The source document for an electronic fund transfer is check number
.
True
True or false
When cash is paid for expenses, the business has more equity.
False
Increases in any liability account are shown on the T accounts.
(A) debit side
(B) credit side
(C) left side
(D) non of these
(B) Credit Side
True or False.
When services are sold on account, an asset account and a liability account are affected.
False
True or False.
All corrections for posting errors should be made in a way that leaves no question as the correct amount.
True
What expense is a service charge?
Miscellaneous Expense
What is a business that preforms an activity for a fee?
Service Business
Paid cash for advertising
(Debit) ADVERTISING
(Credit) CASH
What is debit and what is credit.
Paid cash for insurance.
Debit - Prepaid Insurance
Credit - Cash
What do you do if it is credit to credit?
Add
True or False.
Businesses use petty cash when writing a check is not time or cost effective.
False.
True or False
Assets, such as cash and supplies have value because they can be used to acquire other assets or be used to operate a business.
True
A list of accounts used by a business?
Chart of Accounts
What is credit and what is debit?
Paid cash to owner, David Dumire, for a withdrawal of equity.
Debit - David Dumire, Drawing
Credit - Cash
What do you do if it is debit to credit?
Subtract
A check with a future date on it.
Special endorsement