Accounts, Debits & Credits, Journals and the Trial Balance

Question 1

Assets become ________ as they are gradually used up.

Answer 1

Expenses

Question 2

A journal entry must contain equal total _______ and _______ entries.

Answer 2

Debit and Credit (Remember amounts must equal)

Question 3

What does the trial balance list?

Answer 3

The trial balance lists the names and balances of all of the accounts in the order they appear in the general ledger.

Question 4

What is the left side of the T-account called?

Answer 4

Debit side

Question 5

Journal entries are written into a book called the _____ _______.

Answer 5

General Ledger

Question 6

What is a Chart of Accounts?

Answer 6

A listing of all the accounts a business uses with their unique account number.

Question 7

What is the right side of the T-Account called?

Answer 7

Credit Side

Question 8

Account transactions are posted to an individual account’s record called a _____.

Answer 8

Ledger

Question 9

Which types of accounts increase on the debit side?

Answer 9

Assets, Withdraws, Expenses

Question 10

What are assets?

Answer 10

Assets are items a company uses to produce future revenue

Question 11

An account’s ledger is another form of its ________.

Answer 11

T-account

Question 12

What are withdraws (drawings)?

Answer 12

Drawings refers to money taken out of the business by a sole owner.

Question 13

What are expenses?

Answer 13

Expenses are costs incurred to help produce revenue.

Question 14

Liabilities represent a company’s _______.

Answer 14

Debt

Question 15

What are the 6 major account categories?

Answer 15

Assets, Liabilities, Capital (Equity), Revenue, Expenses, Withdrawals (Drawings)

Question 16

A book containing all the account ledgers together is called the ______ ______.

Answer 16

General Ledger.

Question 17

What is Revenue?

Answer 17

Revenue is what a company earns when it sells a prduct or services.

Question 18

Which types of accounts increase on the credit side?

Answer 18

Liabilities, Revenue and Capital

Question 19

What does a trial balance prove?

Answer 19

A trial balance only proves the equality of debits and credits.

Question 20

Capital or Equity

Answer 20

The level of ownership in a business.

Question 21

Journal entries consist of what 3 things?

Answer 21

Which accounts are involved, what the transaction amounts are, whether to debit or credit each account.