Ch. 1 Review-Advanced Accounting

Anything of value that is owned is called

• asset

• liability

• equity

• none of these

An account in a general ledger that summarized all accounts in a subsidiary ledger is called a

• general account

• special account

• maintenance account

• none of these

An amount of cash kept on hand and used for making small payments is called

• cash on hand

• petty cash

• quick cash

• none of these

A form for recording transactions in chronological order is called a

• journal

• special journal

• ledger

• none of these

A ledger that contains all accounts needed to prepare financial statements is called a

• special ledger

• general ledger

• subsidiary ledger

• none of these

An account that reduces a related account on a financial statement is called a

• liability account

• contra account

• credit account

• none of these

Financial rights to the assets of a business are called

• liabilities

• ownership rights

• equities

• none of these

A business that purchases and sells goods is called a

• service business

• merchandising business

• selling business

• none of these

A form prepared by the customer showing the price deduction taken by the customer for returns and allowances is called a

• credit memorandum

• debit memorandum

• return memorandum

• none of these

A record summarizing all the information pertaining to a single item in the accounting equation is called

• journal

• ledger

• account

• none of these