REVIEW UNIT 6 (2 books) AVCNKT

1. 1. The process of recording a business transaction in the accounting records.

• Auditing

• Journalizing

• crediting

• Bookkeeping

2. 2. A algebraic formula that expresses the equality of two expressions, by connecting them with the equal's sign.

• Equation

• Asset

• Notation

• Dividend

3. 3. Journalizing lets people keep track of ______ in order and find mistakes in the accounting.

• accounts

• customers

• cash

• deals

4. 4. The ______ is a fundamental accounting principle that states that the total assets of a business are equal to the sum of its liability and owner’s equilty.

• balance sheet

• 4. accounting equation

• financial statement

• statement of Retained Earning

5. 5. Which of the following is not an asset?

• Equipment

• Cash

• Building

• Retained Earnings

6. 6. Which is an Owners' Equity?

• Loan

• Preferred stocks

• Salary

• creditor

7. 7. The debit column is always on the ______ of the table.

• left

• right

• at the bottom

• above

8. 8. An investment in the business increases assets and ______.

• cash

• capital

• account

• debts

9. 9. All _______ to the balance sheet debit side must have a corresponding credit entry on the balance sheet, ensuring the equation remains balanced.

• entries

• accounts

• items

• changes

10. 10. At the bottom of every journal entry, there should be a short ______ of the business transaction that the journal entry is recording.

• 10. description

• equation

• transaction

• date