quiz 2

Question 1

what side do assets increase and decrease on

Answer 1

assets increase on the left side and decrease on the right side

Question 2

what side do liabilities increase and decrease on

Answer 2

liabilities increase on the right side and decrease on the left side

Question 3

what is a ledger

Question 4

what three steps are followed when determining the total for an account

Answer 4

• total both credit and debit side
• find the difference between both sides of the account
  -balance or allocate the side which has a shortage

Question 5

what is a ledger

Answer 5

a group of accountants

Question 6

what is a trial balance

Answer 6

a statement of all debits and credits in a double entry account book

Question 7

what is a double entry

Answer 7

Double-entry bookkeeping is a method of recording transactions where for every business transaction, an entry is recorded in at least two accounts as a debit or credit

Question 8

A place to record changes caused by transactions is a(n)

Answer 8

account

Question 9

A proof that total debits equals total credits in the ledger is a(n)

Answer 9

trial balance

Question 10

accounts increase on the side which they appear on the

Answer 10

balance sheet