Accounting Chapter 3 Questions With Accurate Solutions

Accounting Chapter 3 Questions With Accurate
Solutions
CLASSIFICATION - CORRECT ANSWER✅✅✅a means of identifying each account as an
asset, liability or owners equity


asset accounts show - CORRECT ANSWER✅✅✅the property a business owns



liability accounts show - CORRECT ANSWER✅✅✅the debts of the business



owner equity accounts show - CORRECT ANSWER✅✅✅the owners financial interest in
the business


account - CORRECT ANSWER✅✅✅a device for recording the changes in the fundamental
accounting elements


chart of accounts - CORRECT ANSWER✅✅✅a list of the accounts used by a business to
record its financial transactions


a chart of accounts shows the account name and the account number (account number is assigned
based on the type of account - CORRECT ANSWER✅✅✅assets-begin with the number 1
liabilities- begin with the number 2
owners equity- begin with the number 3
revenue- begin with the number 4
expenses- begin with the number 5


debt and credit side of a T account - CORRECT ANSWER✅✅✅debt is the left side
credit is the right side


capital - CORRECT ANSWER✅✅✅is an owners equity account