Vocab
This is an increase in equity resulting from the sale of goods or services.
What is Revenue?
Define the Accounting Equation.
What is Assets = Liabilities + Owner's Equity
An amount recorded on the left side of an account.
What is a debit?
Posting is transferring information from a ___ ____ to a _____ ______.
journal entry to a ledger account.
The two accounts affected when a business pays cash for an electric bill.
Credit to Cash
This is "An amount owed."
What is a Liability
The asset used the most. It is listed first on a Chart of Accounts.
What is Cash.
The side of a T-Account that increases is called this.
What is the Normal Balance?
If G3 stands for what if found in the "Post Ref" column of a ledger account?
What is page 3 of the General Journal?
True or False. A General Journal includes a debit and credit Balance columns.
False.
Recording transactions in a journal.
What is journalizing.
An example is: Accounts Payable, Party City
What is a Liability
A list of accounts used by a business is:
What is Chart of Accounts?
True or False? Two zeros are written in the cents column when an amount is in even dollars such as $500.00.
True
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
What is File Maintenance?
A ledger that contains all accounts needed to prepare financial statements.
What is a General Ledger?
Which side of a T-Account do expenses increase on?
Debit side
The two accounts and sides affected by this transaction: Paid cash on account to Canyon Office Supplies, $100.
Debit to A/P, Canyon Office Supplies, $100
Credit to Cash, $100
The last step of the posting process.
What is putting the account number in the Post Ref. column of the General Journal.
Determining that the amount of cash agrees with the balance of the cash account in the accounting records.
What is proving cash?
This is a source document for recording a sale on account. It is also referred to as a sales ticket or sales slip.
What is a sales invoice?
In the Asset section of a Chart of Accounts, if you have 110 Cash and 120 A/R, Kohls, what number would A/R, H&M be?
What is 115?
The two accounts affected by this transaction: Amaiya Jackson withdrew equity in the form of cash, $500.
Debit Amaiya Jackson, Drawing, $500
Credit Cash, $500
This happens when a transaction has been improperly journalized and posted to the ledger.
What is a correcting entry?
The five general ledger divisions.
Assets, Liabilities, Owner's Equity, Revenues and Expenses