Chapter 2

Question 1

A(n) ______accumulates detailed information regarding the increases and decreases in a specific asset, liability, or equity item.

Answer 1

ACCOUNT

Question 2

A simplified account, called a(n) ______, is often used as a teaching/learning tool to show increases and decreases in an account.

Answer 2

T-ACCOUNT

Question 3

Increases in these type of accounts are recorded by debits and decreases by credits

Answer 3

ASSETS, DIVIDENDS, & EXPENSES

Question 4

Increases in these accounts are recorded by credits and decreases by debits

Answer 4

LIABILITIES, REVENUE, & SHARE CAPITAL

Question 5

A list of account names and numbers used in the general ledger, normally listed in the order of presentation on the financial statements

Answer 5

CHART OF ACCOUNTS

Question 6

Requires that each transaction be recorded in at least two accounts where the total debits always equal the total credits.

Answer 6

DOUBLE-ENTRY ACCOUNTING

Question 7

An internal document that lists all the account balances at a point in time.

Answer 7

TRIAL BALANCE

Question 8

A book that contains the separate asset, liability, equity, revenue, and expense accounts of an entity where the balance of each account can be found easily at any time.

Answer 8

GENERAL LEDGER

Question 9

A book that chronologically records a business’s debit and credit transactions

Answer 9

GENERAL JOURNAL

Question 10

The process of transferring amounts from the journal to the matching ledger accounts.

Answer 10

POSTING

Question 11

The Accounting Cycle

Answer 11

Analyzing transactions, journalizing them in the general journal, posting from the general journal into the general ledger, preparing the trial balance, and generating financial statements.

Question 12

The side on which increases occur in a T-Account

Answer 12

NORMAL BALANCE

Question 13

When a journal entry has more than one debit or credit

Answer 13

COMPOUND ENTRY