Chap 3

Question 1

Account balance

Answer 1

the difference between the amounts recorded on the two sides of an account

Question 2

accounts

Answer 2

written records of he assets, liabilities, and owner’s equity of a business

Question 3

chart of accounts

Answer 3

a list of the accounts used by a business to record its financial transactions

Question 4

Classification

Answer 4

a means of identifying each account as an asset, liability, or owner’s equity

Question 5

Credit

Answer 5

an entry on the right side of an account

Question 6

debit

Answer 6

an entry on the left side of an account

Question 7

Double-entry system

Answer 7

an accounting system that involves recording the effects of each transaction as debits and credits

Question 8

Drawing account

Answer 8

a special type of owner’s equity account set up to record the owner’s withdrawal of cash from the business

Question 9

Footing

Answer 9

a small pencil figure written at the base of an amount column showing the sum of the entries in the column

Question 10

Normal Balance

Answer 10

the increase side of an account

Question 11

Permanent account

Answer 11

an account that is kept open from one accounting period to the next

Question 12

Slide

Answer 12

an accounting error involving a misplaced decimal point

Question 13

T account

Answer 13

a type of account, resembling a T, used to analyze the effects of a business transaction

Question 14

Temporary account

Answer 14

an account whose balance is transferred to another account at the end of an account period.

Question 15

Transposition

Answer 15

an accounting error involving misplaced digits in a number

Question 16

Trial balance

Answer 16

a statement to test the accuracy of total debits and credits after transactions have been recorded.