Bookkeeping Terminologies

The book of original entry is the definition of a __________.

• Journal

• Ledger

What is the "book of final entry"?

• Journal

• Ledger

A visual representation of the debit (left) and credit right is called?

• T-account

• F-account

It is placing of the account number of the ledger account in the general journal and the general journal page number in the ledger account.

• footing

• cross-referencing

It is getting the total balance when all the debits and credits are summed up in the ledger.

• footing

• indexing

It is drawing double line for the final amount.

• Double rule

• Two lines

The two main methods of bookkeeping and accounting are 1) the cash method, and 2) the __________ method.

• cash

• accrual

Revenues minus expenses equals __________.

• net income

• gross income

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• assets

• liabilities

• capital

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• assets

• liabilities

• capital