Goals Achievement: Chapter Two
The records that are kept for the individual asset, liability, and owner's equity components are known as accounts.
Assets and expenses may be increased with a:
Liabilities, equity, and revenue accounts are decreased with:
Accounts are increased with credits and decreased with debits.
Which accounting record is sometimes known as the book of original entry?
The journal entry to record the billing of clients for services rendered would involve a debit to Accounts Receivable and a credit to:
Which account would be debited to reflect receipt of a $500 utility bill?
All the accounts taken together comprise a firm's:
The transactions in the journal and the accounts in the ledger are linked together by a transfer process called:
The ledger can be thought of as a:
The trial balance is prepared to determine whether accounting records are in balance.
A trial balance is compiled from the account balance information contained in the ledger.
A trial balance with equal debit and credit totals means that the accounting process is free of error.
Errors like transaction omission, transaction duplication, and posting to the wrong accounts would cause trial balance totals to be:
Which form of account is more popular in practice?
The chart of accounts is a: