Accounting Exam Review

The process of recording business transactions chronologically.

• journal

• source documents

• general ledger

• journalizing

The normal balance side of an owner's capital account is the

• debit

• credit

The following is the accounting equation: assets + liabilities = owners equity

• true

• false

Debits do not have to equal credits.

• true

• false

When you have a sale on account which account is used?

• accounts receivable

• accounts payable

Accounts payable is classified as what type of account?

• asset

• liability

• owners equity

A tool used to analyze transactions into debit and credit parts.

• normal balance

• t account

• accounting

Paid cash on account, $85. How is this recorded under the accounts payable account? Debit or Credit

• debit

• credit

A notes payable is considered a

• asset

• liability

• owners equity

When journalizing you should record the debit account first

• true

• false