Page designed to record changes in an individual item
100
Debits appear on which side of an account?
The LEFT side.
100
What are the names used to describe each of the debit/credit totals in each account?
Pin totals
or
Pencil footings
100
What is a trial balance?
Listing of the account balances in a ledger
100
Is capital on the debit or credit side?
Credit
200
What is a ledger?
A group of files or accounts
200
Credits appear on which side of an account?
The RIGHT side.
200
A cash account with a debit balance is which type of account?
An asset.
200
What does a ledger not being in balance mean?
A certain sign that at least one error has been made
200
True or False: An exceptional balance is where an account has an opposite balance than it should
true
300
What is one way a ledger can be prepared?
A looseleaf ledger, card ledger and computer ledgers
300
For each type of account, what is recorded on its beginning value side?
Increases.
300
A bank account with a credit balance is which type of account?
A liability.
300
When organizing a trrial balance sheet, are debits or credits listed first?
Debits are listed first.
300
True or False:
a SALE on account is different from a RECEIPT on account.
True
400
Where do we get the beginning balances for that items account?
Balance sheet
400
What is an accounting entry?
Any changes in the accounts caused by one business entry.
400
What 3 pieces of information does an account contain?
The accounts NAME.
The DOLLAR VALUE.
The account TYPE (Debit/Credit)
400
What is the first step to find your error in a trial balance?
Re-add the trial balance columns
400
Is a debtor's account usually considered a debit or a credit?
Usually a debit.
500
The ledger and what both show financial position. If you have a ledger, 'this' can be prepared from it and vise versa.
A balance sheet.
500
Explain the double-entry system of accounting.
Whenever a transaction occurs, changes occur and must balance, usually as a debit/credit pair.
500
What is the difference between a PURCHASE and a PAYMENT on account?
A PURCHASE on account is a value due to be paid for at a later time,
while a PAYMENT on account refers to a payment that is reduces the amount owed to a creditor.
500
What happens to a completed trial balance?
Used to make a new balance sheet
500
An exceptional balance in an account payable is a credit or a debit?