Accounting Chapter 2

Question 1

Chat is a chart of accounts

Answer 1

A numbered list of accounts in order
Balance sheet accounts 
-Assets
-Liabilities
-equity/dividends

Income statement accounts

• revenue
• expenses

Question 2

What is double entry accounting

Answer 2

A T account

         Cash 
----------------
Debit    |    Credit
             | 
             |
             |

Question 3

Recording a transaction in a journal

Answer 3

Date. Credit. Debit
Nov 1
Cash. 30,000
Common stock. 30,000
Issues common stock

Question 4

Posting the journal entry in the ledger

Answer 4

Nov 1 30,000 | 20,000 Nov 2
|

                    Land ---------------------------------- Nov 2     20,000  |             
                         |

Question 5

What is a trial balance

Answer 5

Title
Trail balance
Dec 1 2016
                          Balance
Acc title          Dbt.      Crt
Assts.          $--
Lia.                            $--
Eqty.                          $--
Dvd.            $--
Rev.                           $--
Exp.            $--
Total.       $\_\_\_\_\_\_.   $\_\_\_\_\_

Question 6

Debt ratio

Answer 6

Liabilities/assets