Chapter 1: Recording Departmental Purchases and Cash Payments

Question 1

Anything owed of value that is owned

Answer 1

Asset

Question 2

A record summarizing all the information pertaining to a single item in the accting eq

Answer 2

Account

Question 3

A record in the a general ledger that summarizes all the accounts in the subsidiary ledger

Answer 3

Controlling Account

Question 4

An equation that shows the relationship between assets, liabilities, and o.e.

Answer 4

Accounting equation

Question 5

The recording of debit and credit parts of the transaction

Answer 5

Double entry Accounting

Question 6

A form recording transactions in chronological order

Answer 6

Journal

Question 7

A group of accounts

Answer 7

Ledger

Question 8

A ledger that contains all the accounts needed to prepare finical statements

Answer 8

General ledger

Question 9

Finical rights to the assets of a business

Answer 9

Equities

Question 10

the procedure for arranging accounts into a general ledger, assigning accounts numbers, and keeping records current

Answer 10

file maintenance

Question 11

A journal used to keep only one type of transaction

Answer 11

special journal

Question 12

a ledger that is summarized in a single general ledger account

Answer 12

Subsidiary ledger

Question 13

Bus. papers by which information is obtained for a journal entry

Answer 13

Source documents

Question 14

Amount remaining after assests-from liablites

Answer 14

Owners equity

Question 15

Owners equity in a corporation

Answer 15

Stockholders corporation

Question 16

A bus. that sells and purchases goods

Answer 16

Merchandising bus

Question 17

a cash account discount taken on merchanidse purchased on account

Answer 17

purchases discount

Question 18

a decdeuction that a vendor allows on the invoice amount to encourage prompt payment

Answer 18

Cash discount

Question 19

a form prepared by the customer showing the price deduction taken by the customer for return on an allowance

Answer 19

Debit memorandum

Question 20

an account that reduces a related account on a financial statement

Answer 20

Contra Account

Question 21

an accounting system showing accounting information for two or more departments

Answer 21

departmental accounting system

Question 22

an amount of cash kept on hand and used for making small payments

Answer 22

petty cash

Question 23

transferrring transaction information from a journal entry to a ledger account