T accounts - Assets, Liabilities, O/E, Revenue, Expenses

Question 1

Ledger

Answer 1

Accounts Grouped together.

Question 2

Chart Of Accounts

Answer 2

A list of all the accounts and their assigned account numbers.

Question 3

Numbering The Accounts

Answer 3

Assets Begins with 1
Liabilities 2
Owner's Equity 3
Revenue Accounts 4
Expense Accounts 5

Question 4

Double-Entry Accounting

Answer 4

A system of record keeping in which each business transaction affects at least two accounts.

Question 5

T-Accounts

Answer 5

An efficient way to apply double-entry accounting.

Question 6

Debit

Answer 6

Is the amount entered on the left side of the T-account.

Question 7

Credit

Answer 7

Is the amount entered on the right side of the T-account.

Question 8

Normal Balance

Answer 8

Is always on the side that will increase the account.

Question 9

Rules for Asset Accounts

Answer 9

An asset account is increased (+) on the Debit side (Left side) and decreased on Credit Side (right side)

Question 10

Asset Balance is on what side

Answer 10

Debit Side

Question 11

Rules for Liabilities and Owner’s Capital

Answer 11

Liabilities and Owner’s Capital accounts are Increased (+) on the credit side (right side) and decreased on the debit side (left side)

Question 12

The normal balance side of liabilities is

Answer 12

Credit Side

Question 13

The normal balance side for Owner, Capital is

Answer 13

Credit Side

Question 14

Temporary Capital Accounts

Answer 14

Revenue,Expense,and Withdrawals accounts used to collect information for a single accounting period.
Ex: Utilities Expense

Question 15

Permanent Accounts

Answer 15

Continuous from one accounting period to the next.

Assets, Liabilities, Owner’s Capital

Question 16

Balance and Increase Side for Revenue

Answer 16

Credit Side

Question 17

Balance and Increase Side for Expenses

Answer 17

Debit Side

Question 18

Balance and Increase Side for Withdrawals

Answer 18

Debit Side

Question 19

John Smith invests $25,000 in Teaneck Company

Answer 19

Debit: Cash
Credit: John Smith, Capital

Question 20

John Smith transfers office furniture into the business from home (worth $600)

Answer 20

Debit: Office Furniture
Credit: John Smith, Capital

Question 21

Teaneck Company buys office equipment for $1,500.

Answer 21

Debit: Office Equipment
Credit: Cash

Question 22

Teaneck Company buys a desk and chair on account from Hackensack Furniture for $500.

Answer 22

Debit: Office Furniture
Credit: A/P - Hackensack Furniture

Question 23

Teaneck Company wrote a check for $125 for advertising.

Answer 23

Debit: Advertising Expense
Credit: Cash

Question 24

Received $1,200 for services provided.

Answer 24

Debit: Cash
Credit: Service Revenue

Question 25

Provided a service to Olive Company and agreed to be paid $500 at a later date.

Answer 25

Debit: A/R - Olive Company
Credit: Service Revenue

Question 26

John Smith withdrew $400 for personal use.

Answer 26

Debit: John Smith, Withdrawals
Credit: Cash

Question 27

Teaneck Company paid Hackensack Furniture $250 of the money owed for furniture previously purchased.

Answer 27

Debit: A/P - Hackensack Furniture
Credit: Cash

Question 28

Teaneck Company sold one of their tables to Hobart Company and agreed to be paid at a later date - $100.

Answer 28

Debit: A/R - Hobart Company
Credit: Office Furniture

Question 29

Received $100 from Hobart Company for furniture previously sold to them on account.

Answer 29

Debit: Cash
Credit: A/R - Hobart Company

Question 30

Paid rent for one month - $750.

Answer 30

Debit: Rent Expense
Credit: Cash

Question 31

Teaneck Company had the office painted (maintenance expense) and agree to pay James Jones at a later date- $900.

Answer 31

Debit: Maintenance Expense
Credit: A/P - James Jones

Question 32

Trial Balance

Answer 32

A form created to prove the equality of debits and credits.

Question 33

Revenue Recognition

Answer 33

Revenue should be recognized on the date earned, even if cash has not been received.