Unit 2

Question 1

Accounting Cycle

Answer 1

1. Recognize a business transaction and describe the various types of accounts in which it can be recorded
2. Illustrate the impact of business transactions on the accounting equation
3. Analyze business transactions using T-Accounts
4. Record business transactions in the journal and post the to the ledger
   5.Prepare and use a trial balance

Question 2

Transaction

Answer 2

Any event that has financial impact on a business and that can be reliably measured

Question 3

Assets Accounts

Answer 3

Cash, Accounts Receivable, Inventory, Prepaid Expenses, Land, Building, Equipment

Question 4

Liability Accounts

Answer 4

Accounts Payable, Accrued Liabilities, Loans Payable

Question 5

Shareholders Equity Accounts

Answer 5

Share capital, retained earnings, dividend, revenues, expenses

Question 6

Double entry system

Answer 6

method that all but the smallest of businesses use to record transactions. Every transaction has 2 sides and affects 2 or more accounts

Question 7

Chart of accounts

Answer 7

list the name of every account and its unique account # but it does not provide the account balance