Chapter 2 Flashcards
1
Q
accounts receivable/payable vs notes receivable/payable
A
notes receivable is more binding and has an interest rate
2
Q
Debit/Credit side
A
debit - left
credit - right
3
Q
Ledger
A
Group of T-accounts
4
Q
Common ways of correcting accounting errors
A
add missing
/2
/9
5
Q
Where do we record transactions?
A
Journal - chronological record of transactions
6
Q
Posting
A
copying from journal to ledger
7
Q
List of all accounts with their balances
A
trail balance
8
Q
Order of recording transactions and preparing financial statements
A
Journal
Ledger
Trail Balance
Financial Statements
