Quiz No. 16 (Page 429) Flashcards
A tool that is used to classify and summarize effects of transactions on the accounting values.
Account
Table of contents listing the titles and numbers of the accounts found in the general ledger.
Chart of Accounts
The normal balance of accounts payable.
Credit Balance
A document used as evidence that cash was collected from the client/customer.
Official Receipt
The left side of an account.
Debit
The record processing step in accounting when transactions are entered in a journal.
Journalizing
A record showing the details and running balance of a customer’s account.
Subsidiary Ledger
The book of original entry where transactions are entered.
General Journal
The book of final entry which shows a compilation of accounts wherein the debits and credits of each account is entered in one place so that the balance may be determine at anytime.
General Ledger
The process of transferring information from the journal to the ledger.
Posting
A form listing the ledger accounts with their corresponding debit or credit balances.
Trial Balance
A simple accounting device showing the increase side and the decrease side of an account.
T Account
An accounting requirement that an entry must have an equal debit and credit amount.
Double Entry Procedure
Number of days it takes for cash to be used and converted back to cash.
Operating Cycle
Series of steps and procedures performed in one accounting period.
Accounting Cycle
An entry made up of more than one debit and more than one credit.
Compound Entry
Classification of obligations that are to be paid within a year.
Current Liabilities
Classification of assets which includes items that are used within a year or the operating cycle whichever is longer.
Current Assets
Document supporting cash disbursements.
Cash Voucher
Column reference indicating source of posting or entry.
Folio
Transactions are initially recorded in the?
Journal
A credit is either an increase or decrease. It ______.
(+Expenses, +Income, -Liabilities, -Capital)
Increases Income
The right side of an account is referred to as a
Credit
To test the equality of the debits and the credits, the accountant prepared periodically a?
Trial Balance
An agreement to advertise the company next month requires
No entry
A debit to P1,000 accounts receivable posted to the debit side of the general ledger as P100 will
understate the accounts receivable by P900
A debit entry for P6,750 was posted as P7,650. This error is called a
Transposition
The following accounts are likely to be debited only except one.
(Owner’s Drawing, Rent Expense, Supplies, Taxes & Licenses)
Supplies
Collected cash on the note issued by the customer for the professional service rendered. You will
Credit notes receivable
Amalia Industries received a utility bill of P700 and immediately paid it. The journal entry to record this includes a
Debit to utility expense P700
