Chapter 3- Double Entry Accounting Flashcards
1
Q
Assets Normal Balance
A
Debit
2
Q
Liabilities Normal Balance
A
Credit
3
Q
Shareholders Equity Normal Balance
A
Credit
4
Q
Revenues Normal Balance
A
Credit
5
Q
Expenses Normal Balance
A
Debits
6
Q
Chart of accounts
A
list of all company’s accounts
7
Q
Permanent accounts
A
- have balances that carry over from one period
- ex. cash
- on F.S
8
Q
Temporary accounts
A
- beginning balance is zero at end of period
- on S.I
9
Q
Accounting cycle
A
- opening balances
- complete transactions
- record in journal
- post transactions to GL
- trial balance
- adjust entries
- adjusted trail balance
- prepare F.S
- closing entries
10
Q
Journal
A
- chronological listing of all transactions
- each entry must affect two accounts
11
Q
Trial balance
A
Total of debits and credits
12
Q
Adjusting entries
A
- accruals: record before cash/ expense is received
- deferrals: record after cash/ expense is received
