Accounting Midterm-B

What is an Accounting?

What is the difference between General Journal and General Ledger?

Explain the terminologies below:

1- Revenue

2- Expense

3- liability

What is an accounting equation?

Solve the transaction below;

Oct 2nd, Ali purchased a car with the cash amount of $50,000

Solve all the transactions below in general journal format;

1- jan 1st, Haris started a business $100,000.

2- jan 2nd, a business purchased computers with cash $32,000.

3- jan 4th, paid cash bills of $5000.

4- jan 5th, sold goods for cash $12,000.

5- jan 6th, paid for services cash $6500

How would an accountant record an increase in cash?

• debit

• credit

How would an accountant record an increase in Expense?

• Debit

• Credit

A business purchased an equipment for $10,000.

what will be the two account involved in above transaction?

• equipment and cash

• expense and equipment

• equipment and account payable

Credit is the ............ side of account

• left

• right