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WorksheetsVocabulary Ch. 1
Total questions: 25
Worksheet time: 13mins
The accounting equation is stated as:
Stockholder's Equity=Asset + Liabilities
Asset=Liabilities + Owner's Equity
Owner's Equity=Liabilities + Asset
Liabilities= Asset + Stockholder's Equity
A ledger that contains all accounts needed to prepare financial statements is
journal
file maintenance
general ledger
controlling account
A journal used to record only one kind of transaction.
Journal
Subsidiary Ledger
General Journal
Special Journal
Liability is
The amount owned.
The amount renewed.
The amount owed by a business.
The amount paid in full by a business.
Asset is
Anything owed by a business.
Anything that is due on a specific due date.
Anything that is a liability
Anything of value that is owned
Business papers from which information is obtasined for a journal entry.
Source Documents
File Journal
File Maintenance
General Documents
Subsidiary Ledger
A ledger that is summarized in multiple entries.
A journal that is used inside of a journal.
A ledger that is summarized in a single general ledger account.
A ledger that is summarized in the subsidiary ledger.
A liability account has a normal debit balance.
True
False
Expense accounts have normal credit balances.
True
False
Revenue accounts have a normal credit balance.
True
False
Owner's Equity accounts have a normal credit balance.
True
False
Decreases in revenue accounts are recorded on the credit side.
True
False
Increases in liability accounts are recorded on credit side.
True
False
Increases in asset accounts are recorded on the credit side.
True
False
Decreases in expense accounts are recorded on the credit side.
True
False
Owner's Equity is
The amount remaining after the value of all liabilities - the value of all assets.
The amount remaining after the value of all liabilities + the value of all assets.
The amount remaining after the value of all liabilities / the value of all assets.
The amount remaining after the value of all liabilities x the value of all assets.
The recording of debit and credit parts of a transaction.
Subsidiary ledger
Accounting equation
General ledger
Double-entry accounting
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
Source documenting
File maintenance
Special Journal
Controlling account
An amount of cash kept on hand and used for making small payments.
Contra cash
Petty cash
Petty change
Contra account
Purchase discount is
a cash discount taken on merchandise purchased on account.
a discount markup taken on merchandise purchased on an account.
a deduction that a vendor allows on an invoice amount to encourage prompt payment.
a discount taken on merchandise only when purchased with cash.
Contra account is
A deduction that vendor allows.
A form prepared by the customer showing the price deduction taken by the customer.
An account showing accounting information for two or more departments.
An account that reduces a related account on a financial statement.
Replenishing the petty cash fund increases the Petty Cash account balance.
True
False
When a customer returns merchandise for credit, the customer issues a debit memorandum for the amount of the return.
True
False
A purchase discount is usually stated as a percentage.
True
False
Individual amounts in the Accounts Payable Credit column of the purchases journal are posted at the end of each month.
True
False
