General Ledger and Trial Balance

A _________ ________ is the entire set of accounts that a business uses.

• trial balance

• general ledger

• balance sheet

• income statement

The left side of the T-account is called the _________ side and the right side is called the ______ side.

• credit, debit

• debit, credit

• asset, liability

• income, expense

When the business earns revenue, the ultimate effect of the revenue increase is to increase the ________ __________.

• liabilities account

• owner's equity

• asset value

• cash flow

Asset accounts are increased by __________ entries and decreased by ________ entries.

• credit, debit

• debit, credit

• liability, asset

• expense, income

Liability accounts are ___________ by credit entries and ___________ by debit entries.

• decreased, increased

• increased, decreased

• balanced, unbalanced

• unaffected, affected

The _________ _________ rule states that in the recording of a transaction, the total amount of the debit entries must equal the total amount of the credit entries for the transaction.

• single entry

• double entry

• accounting balance

• financial statement

The steps that a business completes during each accounting period to record, retain and report the monetary information are known as the _________ _________.

• accounting cycle

• financial statement

• balance sheet

• income summary

Recording to Ledgers is the _____________ step in the accounting cycle.

• second

• first

• third

• last

A _________ is a schedule that lists the titles of all the accounts in a business’s general ledger, the debit or credit balance of each account and the totals of the debit and credit balances. 

• Trial balance

• Chart of accounts

• Schedule of Accounts Receivable

• Subsidiary Ledger

In accounting, what is the primary purpose of a trial balance?

• To calculate net income

• To ensure that debits equal credits

• To prepare financial statements

• To record transactions