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The Balance Sheet
Income Statement
The General Journal
Debit or Credit Account
General Knowledge
100
The liabilities are located on this side of the balance sheet.
The right side.
100
The two accounts compared on the income statement are these.
Revenues and Expenses
100
This is the first entry in the General Journal.
The opening entry.
100
Assets are commonly this.
Debit
100
The acronym GAAP means this.
Generally Accepted Accounting Principles.
200
Capital is factored in this.
Owner's Equity
200
The income statement tells this.
Net income or net loss.
200
These entries are commonly indented.
Credit entries.
200
Capital is commonly this.
Credit
200
One whos owes money to you is this to you.
A debtor.
300
Assets are equal to this.
Liabilities plus Owner's Equity.
300
These are recorded first on the income statement.
Revenues
300
These portion of an entry is recorded first.
Debit entries.
300
Drawings is commonly this.
Credit
300
One to whom you owe money is this to you.
A creditor.
400
Balance Sheets give dollar values of these.
Assets, liabilities, and equity.
400
To determine net income, this calculation must be done.
Revenues minus Expenses.
400
In the general journal, the debits and credits are kept in these respective columns.
Left and Right.
400
Expenses are commonly this.
Debit.
400
This is the objective of the Trial Balance.
Ensuring that debits equal credits.
500
Balance Sheets are produced to show account balances at this time.
The time that they are written.
500
The rate of this tax is dependent on net income.
Income Tax
500
Additions to the general journal are recorded on these dates.
The dates at which the transaction occurred.
500
Revenue is commonly this.
Credit
500
The P.R. column in the general journal means this.
Posting Reference