Reversed Chapter (2)

Question 1

A claim against the customer created by selling merchandise or services on credit.

Answer 1

account receivable

Question 2

The resources owned by a business.

Answer 2

assets

Question 3

The amount of the difference between the debits and the credits that have been entered into an account.

Answer 3

balance of the account

Question 4

A list of the accounts in the ledger.

Answer 4

chart of accounts

Question 5

An entry that is prepared when an error has already been journalized and posted.

Answer 5

correcting journal entry

Question 6

The stock outstanding when a corporation has issued only one class of stock.

Answer 6

common stock

Question 7

Amount entered on the right side of an account.

Answer 7

credit

Question 8

Amount entered on the left side of an account.

Answer 8

debit

Question 9

Distribution of a corporation’s earnings to stockholders.

Answer 9

dividends

Question 10

A system of accounting for recording transactions, based on recording increases and decreases in accounts so that debits equal credits.

Answer 10

double-entry accounting system

Question 11

Assets used up or services consumed in the process of generating revenues.

Answer 11

expenses

Question 12

Financial analysis that compares an item in a current statement with the same item in prior statements.

Answer 12

horizontal analysis

Question 13

The initial record in which the effects of a transaction are recorded.

Answer 13

journal

Question 14

The form of recording a transaction in a journal.

Answer 14

journal entry

Question 15

The process of recording a transaction in the journal.

Answer 15

journalizing

Question 16

A group of accounts for a business.

Answer 16

ledger

Question 17

The rights of creditors that represent debts of the business.

Answer 17

liabilities

Question 18

The normal balance of an account can be either a debit or a credit depending on whether increases in the account are recorded as debits or credits.

Answer 18

normal balance of an account

Question 19

The process of transferring the debits and credits from the journal entries to the accounts.

Answer 19

posting

Question 20

Net income retained in a corporation.

Answer 20

retained earnings

Question 21

Increases in assets from performing services or delivering products to customers.

Answer 21

revenues

Question 22

In the double-entry accounting system, specific rules for recording debits and credits based on the type of account.

Answer 22

rules of debit and credit

Question 23

An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.

Answer 23

slide

Question 24

The owners’ equity in a corporation.

Answer 24

stockholders’ equity

Question 25

The coordination and control of materials, services, information, and finances as they move in a process from supplier, through the manufacturer, wholesaler, and retailer to the consumer.

Answer 25

T account

Question 26

An error in which the order of the digits is changed, such as writing $542 as $452 or $524.

Answer 26

transposition

Question 27

A summary listing of the titles and balances of accounts in the ledger.

Answer 27

trial balance

Question 28

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.

Answer 28

unadjusted trial balance

Question 29

The liability created by receiving revenue in advance.

Answer 29

unearned revenue