accounting

Question 1

asset source transactions

Answer 1

increase in an asset account (debit)(from stockholders, creditors, OA) and an increase in a corresponding liability or stockholders equity account (credit)

Question 2

asset exchange transaction

Answer 2

trading one asset for another; one asset account increases, the other decreases ex: purchase of land so debit land, credit cash

Question 3

asset use transactions

Answer 3

decreases an asset account (credit) and a liability (debit). ex: paid for salaries expense, credit cash, debit salaries expense

Question 4

claims exchange transactions

Answer 4

exchanging one claims account for another. debit claims account which is decreasing, credit claims account which is increasing. ex: recognizes OA on account. debit OA and credit accounts payable

Question 5

assets

Answer 5

• cash
• accounts receivable
• inventory
• prepaid expenses
• property

Question 6

liabilities

Answer 6

• accounts payable
• bonds payable
• unearned revenue
  -“payables”

Question 7

equity

Answer 7

• common stock
  -treasury
• retained earnings