Understanding the Recording Process in Accounting

Fill in the blank: Debit means ______ and Credit means Right.

• A) Up

• B) Down

• C) Left

• D) Right

What does the term 'account' refer to in accounting?

• A record of increases and decreases in a specific item

• A list of all transactions

• A summary of financial statements

• A report of profits.

Which side of the T account is used to record decreases in liabilities?

• Left

• Right

• Top

• Bottom

What is the debit balance of the Cash T-Account shown?

• $100,000

• $5,000

• $83,000

• $17,000

What is the minimum number of accounts involved in a double-entry accounting transaction?

• 1

• 2

• 3

• 4

Fill in the blank: The journal provides a ________ record of transactions.

• Random

• Chronological

• Alphabetical

• Numerical

Fill in the blank: A complete journal entry consists of the date of a transaction, the accounts and amounts to be debited and credited, and ________.

• a detailed report

• a brief explanation

• a summary

• a ledger entry

Fill in the blank: On January 10, Smith Inc. pays $4,000 for ________.

• A) rent

• B) supplies

• C) salaries

• D) services

Fill in the blank: On January 20, Smith Inc. pays $1,000 cash for ________.

• A) rent

• B) supplies

• C) employee salary

• D) services

What is the credit account when Smith Inc. pays $1,000 cash for employee salary on January 20?

• Cash

• Salaries Expense

• Accounts Receivable

• Rent Revenue