Quiz - Ledgers and the Trial Balance (U2)

Olivia is managing her personal finances and wants to keep track of all her financial transactions in a specific account. What is this record called?

• Ledger

• T-Account

• Trial balance

• Pin total

In Benjamin's accounting class, he learned about T-Accounts. What is the right side of a T-Account known as?

• Debit

• Credit

• Ledger

• Receipt on account

James is learning about accounting and wants to know for which type of accounts T-accounts can be created?

• Only for cash accounts

• Only for liability accounts

• For every account on the balance sheet

• Only for revenue accounts

Anaya is reviewing the financial statements of her small business. How much is the A/R (Accounts Receivable) from R. Van Loon?

• $620

• $150

• $2,465

• $3,265

Rohan is learning about accounting. He wants to know which type of balance is recorded on the right hand side?

• Asset

• Expense

• Liability

• Revenue

Chloe is learning accounting and wants to properly record transactions according to the Debit and Credit Theory. What is the first step she should take?

• Identify the type of account that has changed.

• Determine which accounts change in value.

• Decide whether the change is an increase or a decrease.

• Decide whether the change is recorded as a debit or a credit.

Emily is preparing the financial statements for her small business. What is the result of not following the four steps in the Debit and Credit Theory?

• Incorrect tax calculations

• Unbalanced ledger

• Inaccurate income statement

• Misleading cash flow statement

Aiden is reviewing the financial statements of his company. What is the effect on the recording when liabilities increase?

• Recorded on the debit side

• Recorded on the credit side

• Recorded on the asset side

• Recorded on the equity side

Liam started a small business and noticed that his owner's equity increased. What is the effect on the recording?

• Recorded on the debit side

• Recorded on the credit side

• Recorded on the liability side

• Recorded on the asset side

Henry is reviewing the company's financial statements. Which side is used for recording an increase in liabilities?

• Debit

• Credit

• Asset

• Equity