Basic Accounting Concepts Quiz

What is the term for an entry on the right side of an account?

• Debit

• Slide

• Credit

• Footing

Which type of account is kept open from one accounting period to the next?

• T account

• Permanent account

• Drawing account

• Temporary account

What is a T account used for?

• To record owner's withdrawal of cash

• To analyze the effects of a business transaction

• To list the accounts used by a business

• To test the accuracy of total debits and credits

What is the term for an accounting error involving misplaced digits in a number?

• Classification

• Footing

• Slide

• Transposition

What is the purpose of a trial balance?

• To show the sum of the entries in a column

• To test the accuracy of total debits and credits after transactions have been recorded

• To identify each account as an asset, liability, or owner's equity

• To record the effects of each transaction as debits and credits