ACCOUNTING 101- Chapter 2
- ANS - It is a collection of all accounts with their activity and balances that exist
in a business.
matches
Choice, A general ledgerA general ledger
It is a book of original entry that includes a chronological record of all
transactions that have occurred within a business during a period occurred
matches
Choice, A journalA journal
It is a list of each account and its balance at any given time and is used to verify
that debits = credits
matches
Choice, A trial balanceA trial balance
It is a list of all ledger accounts which exist in a business and includes an
identification number assigned to each account
matches
Choice, A chart of accountsA chart of accounts
\A trial balance is a(n) (list/balance/chart) of accounts and their balances at a
point in time and is used to confirm that the sum of debit account balances
equals the sum of account balances. Use one word for each blank. - ANS - List,
credit
\Accounts payable refer to promises to pay later by the business and are
classified as a(n) (asset/liability/expense) account. - ANS - Liability
\After entering a transaction into the accounting equation, an increase in total
assets can be accompanied by a(n) (increase/decrease)in total liabilities or
(equity/assets) - ANS - Increase equity
\An account is a record of increases and ______ in a specific asset, liability,
equity, revenue or expense. - ANS - Decrease
\An annual insurance policy is paid in advance by a company. How will the
company treat this initial payment and the subsequent expiration of a portion of
the policy over time? (Check all that apply.) - ANS - As a portion of the policy
expires, the expired portion will be removed and transferred to an expense
account.
The initial payment will be recorded as an increase to a Prepaid Insurance
account.
Over time, the expired portion of the policy must be removed from the asset
account as it has been used up and is no longer considered an asset
, \An income statement reports: - ANS - the revenues less the expenses incurred
by a business
\Assets revenues liabilities owner equity - ANS - Assets
matches
Choice, Things of value owned by the businessThings of value owned by the
business
Owner's equity
matches
Choice, The residual interest in the assets of a business after deducting the
business's debtsThe residual interest in the assets of a business after deducting
the business's debts
Revenues
matches
Choice, The dollars earned because of services performed or products soldThe
dollars earned because of services performed or products sold
Liabilities
matches
Choice, The obligations owed by the business to creditorsThe obligations owed
by the business to creditors
\Cash can take many forms. From the lists of items below, choose the one which
includes only items that would be defined as cash. - ANS - Coins, checks, money
orders
\Choose the statement below that correctly explains a general journal.. - ANS - A
journal is a complete record of each transaction in one place and includes the
debit and credit of each transaction.
\creditors liabilities assets and expenses - ANS - Creditors
, Individuals or organizations that have rights to receive payments from a
businessIndividuals or organizations that have rights to receive payments from a
business
Liabilities
Claims against the assets of a businessClaims against the assets of a business
Assets
Things of value owned by a businessThings of value owned by a business
Expenses
The costs of doing businessThe costs of doing business
- ANS - It is a collection of all accounts with their activity and balances that exist
in a business.
matches
Choice, A general ledgerA general ledger
It is a book of original entry that includes a chronological record of all
transactions that have occurred within a business during a period occurred
matches
Choice, A journalA journal
It is a list of each account and its balance at any given time and is used to verify
that debits = credits
matches
Choice, A trial balanceA trial balance
It is a list of all ledger accounts which exist in a business and includes an
identification number assigned to each account
matches
Choice, A chart of accountsA chart of accounts
\A trial balance is a(n) (list/balance/chart) of accounts and their balances at a
point in time and is used to confirm that the sum of debit account balances
equals the sum of account balances. Use one word for each blank. - ANS - List,
credit
\Accounts payable refer to promises to pay later by the business and are
classified as a(n) (asset/liability/expense) account. - ANS - Liability
\After entering a transaction into the accounting equation, an increase in total
assets can be accompanied by a(n) (increase/decrease)in total liabilities or
(equity/assets) - ANS - Increase equity
\An account is a record of increases and ______ in a specific asset, liability,
equity, revenue or expense. - ANS - Decrease
\An annual insurance policy is paid in advance by a company. How will the
company treat this initial payment and the subsequent expiration of a portion of
the policy over time? (Check all that apply.) - ANS - As a portion of the policy
expires, the expired portion will be removed and transferred to an expense
account.
The initial payment will be recorded as an increase to a Prepaid Insurance
account.
Over time, the expired portion of the policy must be removed from the asset
account as it has been used up and is no longer considered an asset
, \An income statement reports: - ANS - the revenues less the expenses incurred
by a business
\Assets revenues liabilities owner equity - ANS - Assets
matches
Choice, Things of value owned by the businessThings of value owned by the
business
Owner's equity
matches
Choice, The residual interest in the assets of a business after deducting the
business's debtsThe residual interest in the assets of a business after deducting
the business's debts
Revenues
matches
Choice, The dollars earned because of services performed or products soldThe
dollars earned because of services performed or products sold
Liabilities
matches
Choice, The obligations owed by the business to creditorsThe obligations owed
by the business to creditors
\Cash can take many forms. From the lists of items below, choose the one which
includes only items that would be defined as cash. - ANS - Coins, checks, money
orders
\Choose the statement below that correctly explains a general journal.. - ANS - A
journal is a complete record of each transaction in one place and includes the
debit and credit of each transaction.
\creditors liabilities assets and expenses - ANS - Creditors
, Individuals or organizations that have rights to receive payments from a
businessIndividuals or organizations that have rights to receive payments from a
business
Liabilities
Claims against the assets of a businessClaims against the assets of a business
Assets
Things of value owned by a businessThings of value owned by a business
Expenses
The costs of doing businessThe costs of doing business
