Chapter 2 Flashcards
1
Q
Assets and Liabilities
A
Debits: increase assets and decrease liability
Credits: decrease assets and increase liability
2
Q
Revenues and Expenses
A
Debits: decrease revenues and increase expenses
Credits: increase revenues and decrease expenses
3
Q
Assets
A
+DR, -CR
4
Q
Liabilities
A
+CR, -DR
5
Q
Capital Account
A
+CR, -DR
6
Q
Draws
A
+DR, -CR
7
Q
Revenues
A
+CR, -DR
8
Q
Expenses
A
+DR, -CR
9
Q
Steps to Record a Transaction
A
- Analyze the transaction: decide what to DR and CR.
- Enter the DR and CR in the JOURNAL.
- Transfer the entry in the journal to the individual accounts in the LEDGER.
10
Q
Transaction Step 1
A
- What accounts are involved?
- What kind of accounts are these?
- Am I increasing or decreasing these accounts?
- Now apply rules of DR and CR
11
Q
Journal
A
A chronological listing of each transaction.
12
Q
Ledger
A
A group of accounts.
13
Q
Chart of Accounts
A
Listing of all accounts with their acct #s
14
Q
The Trial Balance
A
Listing of all accounts according to their DR & CR balances.
DR should = CR
15
Q
All “Unearneds”
A
Liabilities
