Chapter 2 - College Accounting: A Practical Approach

Question 1

What is a T account?

Answer 1

A device used to record increases and decreases in accounts.

Question 2

A group of accounts that record the data from any business transactions is called…

Answer 2

General ledger

Question 3

Which side of the T account is the debit side?

Answer 3

Left Side

Question 4

What side of the T account is the credit side?

Answer 4

Right side

Question 5

Dr is?

Answer 5

Debit

Question 6

Cr. Is

Answer 6

Credit

Question 7

Are dollar signs used in the T accounts?

Answer 7

NO

Question 8

What is a footing?

Answer 8

A footing is the balance of the side

Question 9

What is the balance of a T account?

Answer 9

Is the balance of the debit and credit side added together

Question 10

which side does the balance go on in the T account?

Answer 10

Placed on the side that is greater

Question 11

What are the three components that make up a T account?

Answer 11

Title, left side & right side

Question 12

A list of the ledger accounts is considered…

Answer 12

The chart of accounts

Question 13

How many steps is the accounting analysis?

Answer 13

5

Question 14

What is step 1 of the accounting analysis?

Answer 14

Determine accounts effected

Question 15

What is step 2 of the accounting analysis?

Answer 15

Determine the categories that the accounts belong to

Question 16

What is step 3 of the accounting analysis?

Answer 16

Determine whether the accounts increase or decrease?

Question 17

What is step 4 of the accounting analysis?

Answer 17

What do the rules of debits and credits say

Question 18

What is the final step of the accounting analysis?

Answer 18

What does the T account look like and to place the amounts in the T account according to the rules

Question 19

What is a transaction including more than one debit or credit called?

Answer 19

Compound entry

Question 20

What is the double entry bookkeeping system?

Answer 20

When all the debits are equal to all the credits and that there always must be at least two accounts effected by a transaction

Question 21

According to the rules for the assets accounts, which side increases & decreases the account?

Answer 21

Debit increase
Credit decreases

Question 22

According to the rules of liabilities, which side does the increase & decrease fall to?

Answer 22

Debit decreases
Credit increases

Question 23

Which side is the Increases & decreases according to the rules for Owners equity?

Answer 23

Debit decreases
Credit increases

Question 24

According to the rules what increases & decreases the Expense account

Answer 24

Debit increases
Credit decreases

Question 25

According to the rules what increases & decreases the withdrawal account?

Answer 25

Debit increases
Credit decreases

Question 26

According to the rules what decreases & increases the revenue account?

Answer 26

Debit decreases
Credit increases

Question 27

According to the rules what increases & decreases the capital account?

Answer 27

Debit decreases
Credit increases

Question 28

What accounts increase on the debit side?

Answer 28

Assets
Withdrawals
Expenses

Question 29

Which accounts increase on the credit side?

Answer 29

Capital
Liabilities
Revenue