ACCY 201 FINAL EXAM BARTON REVIEW
SHEET WITH SOLVED QUESTIONS AND 100
PERCENT CORRECT ANSWERS
⩥ What is the normal balance of an Asset account?
Answer: Debit, because Assets are increased by Debits.
⩥ What is the normal balance of a Liability account?
Answer: Credit, because Liabilities are increased by Credits.
⩥ What is the normal balance of a Revenue account?
Answer: Credit, because Revenues are increased by Credits.
⩥ What is the first step in the accounting cycle?
Answer: Journalizing the Entry, where transactions are recorded in the
general journal.
⩥ What must a valid journal entry contain?
Answer: At least one debited account and at least one credited account,
with total debits equaling total credits.
⩥ What is a T-account?
, Answer: A visual representation used to track debits on the left and
credits on the right.
⩥ What is the purpose of preparing an Unadjusted Trial Balance?
Answer: To mathematically prove that total debits equal total credits
before preparing financial statements.
⩥ What does the term 'Double-Entry Accounting' refer to?
Answer: A system where every transaction affects at least two accounts,
maintaining the balance of the accounting equation.
⩥ What does 'Debit' (Dr) signify in accounting?
Answer: The left side of an account, used to increase Assets, Expenses,
and Dividends.
⩥ What does 'Credit' (Cr) signify in accounting?
Answer: The right side of an account, used to increase Liabilities,
Equity, and Revenues.
⩥ What is a Current Asset?
Answer: An asset expected to be realized in cash, sold, or consumed
within one year of the balance sheet date.
⩥ What is the process of 'Posting' in accounting?
SHEET WITH SOLVED QUESTIONS AND 100
PERCENT CORRECT ANSWERS
⩥ What is the normal balance of an Asset account?
Answer: Debit, because Assets are increased by Debits.
⩥ What is the normal balance of a Liability account?
Answer: Credit, because Liabilities are increased by Credits.
⩥ What is the normal balance of a Revenue account?
Answer: Credit, because Revenues are increased by Credits.
⩥ What is the first step in the accounting cycle?
Answer: Journalizing the Entry, where transactions are recorded in the
general journal.
⩥ What must a valid journal entry contain?
Answer: At least one debited account and at least one credited account,
with total debits equaling total credits.
⩥ What is a T-account?
, Answer: A visual representation used to track debits on the left and
credits on the right.
⩥ What is the purpose of preparing an Unadjusted Trial Balance?
Answer: To mathematically prove that total debits equal total credits
before preparing financial statements.
⩥ What does the term 'Double-Entry Accounting' refer to?
Answer: A system where every transaction affects at least two accounts,
maintaining the balance of the accounting equation.
⩥ What does 'Debit' (Dr) signify in accounting?
Answer: The left side of an account, used to increase Assets, Expenses,
and Dividends.
⩥ What does 'Credit' (Cr) signify in accounting?
Answer: The right side of an account, used to increase Liabilities,
Equity, and Revenues.
⩥ What is a Current Asset?
Answer: An asset expected to be realized in cash, sold, or consumed
within one year of the balance sheet date.
⩥ What is the process of 'Posting' in accounting?
