Vocabulary
A ledger that contains all accounts needed to prepare financial statements
GENERAL LEDGER
What is the debited account and credited account when supplies are purchased with cash?
Debit Supplies
Credit Cash
An account has a debit balance of $10,834.00 and then has a credit transaction of $460.00. What is the balance of the account and is it a debit or credit balance?
Balance is $10,374 and it is a debit balance
What is the first digit of account numbers for accounts in the owner's equity ledger division?
3 for Owner's Equity
What classifications have debit balances?
Assets and Expenses
Transferrng information from a journal entry to a ledger account
POSTING
What is the debited account and credited account for supplies purchased on account?
Debit Supplies
Credit A/P
In the general ledger, what is written in the post reference column?
The journal and page number
What will be the correcting entry when the payment for rent was mistakenly posted to miscellaneous?
Debit Rent Expense
Credit Misc. Expense
Which accounts have credit balances?
Sales, A/P, and Capital
A business form giving written evidence for cash received
RECEIPT
What is the debited account and credited account when services are sold on account?
Debit A/R
Credit Sales
Which section of accounts are alphabetized in the chart of accounts?
Expenses
Cash accounts are listed in the 100's sectio of the chart of accounts based on what rule?
Liquidity
Which classification represents debts?
Liabilities
A Business paper from which information is obtained for a journal entry
SOURCE DOCUMENT
What is the debited and credited account when cash is received for services sold on account?
Debit Cash
Credit A/R
After posting to the general ledger, what is written in the general journal to indicate that the posting is completed?
The account number
How are entries in a general journal recorded?
Chronologically
Which classification represents sales and what is the normal balance of this account
Revenue and Credit
A journal used for recording transactions
GENERAL JOURNAL
What is the debited and credited accounts when cash is received for sales?
Debit Cash
Credit Sales
What is the rule for adding new expense accounts?
If between two existing accounts then add account number in 5 digit increments. If added and not between existing accounts, then add a 10 digit increment.
Which classification has two accounts, but the accounts have different normal balances?
Owner's Equity
Which accounts decrease equity?
Expenses and Drawing