Quiz 2 Flashcards
We use t-accounts to know the _________ of a particular account.
balance
Define ledger
a GROUP of accounts for a business entity
Define chart of accounts
a LIST of accounts in the ledger
-accounts are listed in order.
what does the 1-digit represent
represents the major ACCOUNT GROUP of the ledger in which the account is located
what does the 2-digit represent
represents the LOCATION of the account within its groups
Assets
11 cash,
12 accounts rec.
14. supplies
15 prepaid insurance
17. Land
18. Office Equipment
Liabilities
21 Accounts pay
23 unearned rent
Owner’s equity
31 capital
32 Drawings
Revenue
41 fees earned
Expenses
50
5 digit
1) assets
2) liabilities
3) owner’s equity & Drawings
4) revenue
5) expenses
6 digit
1) assets
2) liabilities
3) owner’s equity
4) owner’s Drawings
5) revenue
6) expenses
every business transaction should be recorded in AT LEAST
2 Accounts
total debits =
total credits
Debit increase
Assets, withdrawals, expenses
AWE
