Chapter 2 - College Accounting: A Practical Approach Flashcards
What is a T account?
A device used to record increases and decreases in accounts.
A group of accounts that record the data from any business transactions is called…
General ledger
Which side of the T account is the debit side?
Left Side
What side of the T account is the credit side?
Right side
Dr is?
Debit
Cr. Is
Credit
Are dollar signs used in the T accounts?
NO
What is a footing?
A footing is the balance of the side
What is the balance of a T account?
Is the balance of the debit and credit side added together
which side does the balance go on in the T account?
Placed on the side that is greater
What are the three components that make up a T account?
Title, left side & right side
A list of the ledger accounts is considered…
The chart of accounts
How many steps is the accounting analysis?
5
What is step 1 of the accounting analysis?
Determine accounts effected
What is step 2 of the accounting analysis?
Determine the categories that the accounts belong to
What is step 3 of the accounting analysis?
Determine whether the accounts increase or decrease?
What is step 4 of the accounting analysis?
What do the rules of debits and credits say
What is the final step of the accounting analysis?
What does the T account look like and to place the amounts in the T account according to the rules
What is a transaction including more than one debit or credit called?
Compound entry
What is the double entry bookkeeping system?
When all the debits are equal to all the credits and that there always must be at least two accounts effected by a transaction
According to the rules for the assets accounts, which side increases & decreases the account?
Debit increase
Credit decreases
According to the rules of liabilities, which side does the increase & decrease fall to?
Debit decreases
Credit increases
Which side is the Increases & decreases according to the rules for Owners equity?
Debit decreases
Credit increases
According to the rules what increases & decreases the Expense account
Debit increases
Credit decreases
According to the rules what increases & decreases the withdrawal account?
Debit increases
Credit decreases
According to the rules what decreases & increases the revenue account?
Debit decreases
Credit increases
According to the rules what increases & decreases the capital account?
Debit decreases
Credit increases
What accounts increase on the debit side?
Assets
Withdrawals
Expenses
Which accounts increase on the credit side?
Capital
Liabilities
Revenue
