2.1 - The Simple Ledger

Question 1

What’s the simplified form of a ledger called

Answer 1

T-account

Question 2

Ledger

Answer 2

Organizes and keeps records of the financials changes

Question 3

What does a T account look like

Answer 3

Big T
Account on top
Debit to the left
Credit to the right

Question 4

Order of the ledger

Answer 4

1. Assets (liquidity)
2. Liabilities (maturity)
3. Owners equity

Same as balance sheet

Question 5

For every transaction…

Answer 5

Dr=Cr!