Chap 4 Quiz

Question 1

The basic unit to record all business transaction is called a _______

Answer 1

ledger account

Question 2

The effect of each transaction is recorded in either the ________ or _______ column of each ledger accounty

Answer 2

equal; two

Question 3

The double entry recording rule states that for every transaction, total debits must ________ total credits. In addition, every transaction affects at least ________ ledger accounts

Answer 3

debit; credit

Question 4

For assets, does a debit or credit entry represent an increase or decrease to the element

Answer 4

increase; decrease

Question 5

For equity, does a debit or credit entry represent an increase or decrease to the element

Answer 5

decrease; increase

Question 6

For expenses, does a debit or credit entry represent an increase or decrease to the element

Answer 6

increase; decrease

Question 7

For income, does a debit or credit entry represent an increase or decrease to the element

Answer 7

decrease; increase

Question 8

For liabilities, does a debit or credit entry represent an increase or decrease to the element

Answer 8

decrease; increase