Accounting II Ch. 2 Test (Parts 1 & 2)

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

• liability
• credit
• asset
• equity

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

• double-entry accounting
• processing
• the accounting equation
• posting

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

• posting
• ordering
• recording
• none of these

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

• special journal
• ledger
• source document
• 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

• none of these
• controlling accounting
• accounting
• double-entry accounting

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

• purchases discount
• credit discount
• cash purchase discount
• good customer discount

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

• subsidiary ledger
• controlling account ledger
• maintenance ledger
• none of these