Chapter 1 Review

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

• asset

• equity

• liability

• credit

The recording of debit and credit parts of a transaction is called

• accounting equation

• posting

• double-entry accounting

• processing

A group of accounts is called a

• ledger

• special journal

• journal

• none of these

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

• Ordering

• Recording

• Posting

• None of these

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

• ledger

• special journal

• source doc

• none of these

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

• debit memorandum

• credit memorandum

• controlling account

• sales invoice

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

• accounting

• double-entry accounting

• controlling

• file maintenance

An equation showing the relationship among assets, liabilities, and owners’ equity is called the

• accounting equation

• financial equation

• journal equation

• none of these

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

• Cash purchase discount

• Good customer discount

• Credit discount

• Purchases discount

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

• Controlling account ledger

• subsidiary ledger

• maintenance ledger

• none of these