Accounting 2 Chapter 1

An amount owed by a business is called a (an)

• liability

• equity

• asset

• none of the above

An account balance that is opposite the normal balance is called a (an)

• opposite balance

• liability

• contra balance

• None of the above

A group of accounts is called a(an)

• special journal

• ledger

• journal

• none of the above

Transferring information from a journal entry to a ledger account is called

• posting

• recording

• ordering

• none of the above

A journal used to record only one kind of transaction is called a

• special journal

• source document

• leger

• none of the above

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

• controlling account

• credit memorandum

• debit memorandum

• none of the above

The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current is called

• controlling accounting

• double-entry accounting

• accounting

• none of the above

An equation showing the relationship among assets, liabilities, and owner's equity is called a(an)

• journal equation

• financial equation

• accounting equation

• none of the above

A cash discount on purchases taken by a customer is called a

• purchases discount

• good customer discount

• credit discount

• none of the above

A ledger that is summarized in a single general ledger account is called a

• maintenance ledger

• controlling account ledger

• subsidiary ledger

• none of the above