Chapter 3

Question 1

System that ensures that each business transaction has equal and opposite effects in at least two different accounts in the accounting system

Answer 1

Double entry system of book-keeping

Question 2

Record in ledgers, used to collect and store debit and credit amounts relating to an asset, a liability, capital, an income or an expense

Answer 2

Account

Question 3

Act of using one book to transfer entries into accounts in another book, thereby performing or completing double entry

Answer 3

Posting

Question 4

Books that collect groups of similar accounts

Answer 4

Ledgers

Question 5

Value of goods bought for resale. For example, to a used car dealer, a car bought for resale

Answer 5

Purchases

Question 6

A balance c/d on the credit side of an account. Result of the total debits being more than the total credits

Answer 6

Debit balance

Question 7

Balance c/d on the debit side of the account. Result of the total debits being less than the total credits

Answer 7

Credit balance

Question 8

Account of a person or business

Answer 8

Personal account