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

Question 13

retained earnings

Answer 13

Retained earnings part of profit not distributed as dividends to shareholders but are instead reinvested in the business. are part of stck holders equity and increase it bc of profit

Question 14

dividends

Answer 14

part of stck holders euqity decrease it. Portion of profit disttobuted to stch holdes