acc ch2

Question 1

horizontal analysis

Answer 1

Financial analysis that compares same item on an earlier statement.

Question 2

what is included in the debit side?

Answer 2

assets (accounts receivable), dividends, expenses

Question 3

what is included in the credit side?

Answer 3

liabilities, equity (retained earns), revenue (fees earned)

Question 4

An account is …

Answer 4

record that tracks financial transactions, assets acc, etc.

Question 5

Asset balance acc =

Answer 5

debits - credits

Question 6

liability and equity balance acc=

Answer 6

credits - debits

Question 7

in a t acc …

Answer 7

debits = credits, if one transaction is debited the other is credited

Question 8

journal

Answer 8

records financial transactions (money inflows and outflow) in organized manner.
1. Date
2. Accts affected (whether credit or debit)
3. Amounts
4. Brief description

Question 9

Ledger

Answer 9

list of accts

Question 10

T o F, there might me errors in a trial balance even its in balance

Answer 10

T

Question 11

chart of accts

Answer 11

accts in ledger in order: assets, liabilities, and stockholders’ equity

Question 12

balance

Answer 12

debits - credits