Bookkeeping 08

Question 1

1. Every time you make a RECORD in the JOURNAL, you are making:

Answer 1

an ENTRY.

Question 2

2. In the DOUBLE ENTRY SYSTEM, each transaction is recorded:

Answer 2

TWICE. As a CREDIT to one account and a DEBIT to another. The TOTAL OF DEBITS in ALL ACCOUNTS must EQUAL THE TOTAL OF CREDITS IN ALL ACCOUNTS. This is an accuracy check.

Question 3

3. To begin the JOURNAL, you head up a TWO COLUMN JOURNAL PAGE:

Answer 3

the LEFT HAND COLUMN is labeled Dr (Debit) and the RIGHT HAND COLUMN is labeled Cr (Credit), with the date of the transaction on the far left column.

Question 4

4. When do you total the JOURNAL ENTRIES?

Answer 4

JOURNAL ENTRIES ARE NOT TOTALED.

Question 5

5. Before you begin, you need to know whether the TRANSACTION should be entered as a Dr or a Cr. These are the rules:

Answer 5

1. ASSETS increase with DEBITS
2. LIABILITIES (Creditor’s Equity) increase with CR.
3. CAPITAL (Owner’s Equity) increase with CREDITS
4. REVENUES increase with CREDITS
5. EXPENSES increase with DEBITS.

Question 6

6. What accounts increase with DEBITS?

Answer 6

ASSETS and EXPENSES

Question 7

7. What accounts increase with CREDITS?

Answer 7

1. LIABILITIES
2. CAPITAL
3. REVENUES

Question 8

8. Mnemonic device for accounts that increase with DEBITS:

Answer 8

Dolores’ EXPENSIVE ASS

Question 9

9. Mnemonic device for accounts that increase with CREDITS:

Answer 9

CREEPY CA-R-LI-ta