Chapter 2 Test Review

Amounts to be paid in the future for goods or services already acquired.

• Accounts Payable

• Accounts Receivable

• Chart of Accounts

• Credit

Amounts to be received in the future due to the sale of goods or services.

• Accounts Payable

• Accounts Receivable

• Chart of Accounts

• Credit

A list of accounts to be used by a business.

• Accounts Payable

• Accounts Receivable

• Chart of Accounts

• Credit

An amount recorded on the right side of an account.

• Accounts Payable

• Accounts Receivable

• Credit

• Debit

An amount recorded on the left side of an account.

• Debit

• Accounts Receivable

• Chart of Accounts

• Credit

An accounting device used to analyze transactions.

• Debit

• Normal Balance

• T Account

• Credit

The side of the account that is increased.

• Debit

• Normal Balance

• T Account

• Credit

Received cash from owner as an investment

• Debit: Cash

  Credit: Capital

• Debit: Supplies

  Credit: Cash

• Debit: Prepaid Insurance

  Credit: Cash

• Debit: Supplies

  Credit: Accounts Payable

Paid cash for supplies

• Debit: Cash

  Credit: Capital

• Debit: Supplies

  Credit: Cash

• Debit: Prepaid Insurance

  Credit: Cash

• Debit: Supplies

  Credit: Accounts Payable

Paid cash for insurance

• Debit: Cash

  Credit: Capital

• Debit: Supplies

  Credit: Cash

• Debit: Prepaid Insurance

  Credit: Cash

• Debit: Supplies

  Credit: Accounts Payable