recording business transactions

Question 1

accounting cycle (6)

Answer 1

analyze transactions
record transactions in a journal
post from journal to ledger accounts
trial balance
journalize and post adjusting entries
prepare post-closing trial balance

Question 2

account

Answer 2

detailed record of the changes that have occurred in particular asset, liability or item of the owner’s equity during the time period

Question 3

double-entry accounting

Answer 3

dual effects of each transaction

Question 4

expanded accounting equation

Answer 4

assets = liabilities + capital - withdrawals + revenues - expenses

Question 5

debit or credit: assets

Answer 5

dr +
cr -

Question 6

debit or credit: liabilities

Answer 6

dr -
cr +

Question 7

debit or credit: owner, capital

Answer 7

dr -
cr +

Question 8

debit or credit: owner, withdrawals

Answer 8

dr +
cr -

Question 9

debit or credit: revenues

Answer 9

dr -
cr +

Question 10

debit or credit: expenses

Answer 10

dr +
cr -

Question 11

general journal

Answer 11

account summaries

Question 12

general ledger

Answer 12

listing containing all assets, liabilities and capital accounts

Question 13

trial balance

Answer 13

list of accounts and their balances at a point in time

Question 14

different between total debits and credits (2)

Answer 14

divided by 9: error may be a slide
divided by 2: debit/credit mistake