Chapter 4.1--The simple ledger

Question 1

Account

Answer 1

A record that documents each change to items in the accounting equation

Question 2

Ledger

Answer 2

A group or file of accounts

Question 3

T-Account

Answer 3

A simple type of account, used to understand accounting theory

Called T-accounts because they look like Ts

Question 4

Essential Features of Ledger Accounts
1.

Answer 4

Each individual balance sheet item is given its own specifically divided page with the name of the item at the top

Question 5

Essential Features of Ledger Accounts
2.

Answer 5

The dollar figure for each item is recorded in the account on the first line

beginning value for the account

Question 6

Essential Features of Ledger Accounts
3.

Answer 6

Record the dollar figure on the correct side of the account

– correct side depends on what side it is on the balance sheet

–Assets– the dollar amount is placed on the left side of the accounts page, liability accounts, and owner’s equity account
dollar amount is placed on the right side of the account page

Question 7

Essential Features of Ledger Accounts
4.

Answer 7

The ledger and the balance sheet both show financial position