Chapter 2: The Recording Process

Question 1

Which accounts have a debit balance?

Answer 1

Assets, Drawings, Expenses.

Question 2

Which accounts have a credit balance?

Answer 2

Liabilities, Owner’s Capital, Revenue.

Question 3

What is the Chart of Accounts

Answer 3

A list of the accounts and account numbers that identify where the accounts are in the ledger. The numbering system used to identify the accounts usually starts with the balance sheet accounts and follows with income statement accounts.

Question 4

What is a trial balance?

Answer 4

A Trial Balance is a list of the accounts and their balance at a specific point in time. This is prepared at the end of the accounting period.