Accounting Midterm Exam Prep

Bringing the bank statement balance into agreement with the checkbook balance is known as

An investment of cash into the business is recorded as as credit in the capital account.

An increase in any account is recorded on the same side as the normal balance side.

A form bookkeepers use for recording transactions in chronological order is called

A business activity that changes assets, liabilities, or owner's equity is called

Paid cash for rent.

A business form ordering a bank to pay cash from a bank account is called

The recording of debit and credit parts of a transaction is called

Assets taken out of a business for the owner's personal use are called

All cash received is recorded in the cash account as a credit.

Received cash from owner as an investment.

An amount recorded on the left side of a T Account is called

The name assigned to any account is

A business owned by one person is called

The balance of a/an expense such as Rent Expense is normally a credit.

A business form giving written acknowledgement for cash received is called

An increase in a revenue account is recorded in the account as a debit.

Anything of value that is owned is called

An example of a cash control is pre-numbered checks.

A record summarizing all the information pertaining to a single item in the accounting equation

Financial rights to the assets of a business are called

A withdrawal of an asset such as cash is recorded as a credit in the drawing account.

A check that a bank refuses to pay is called

Paid cash for a postage stamps (Misc. item)

An endorsement consisting only of the endorser's signature is called

A sale for which cash will be received at a later date is called

Writing an account title and the account number of the heading of an account is called

The number assigned to an account is called

An accounting device used to analyze transactions is called

An increase in an expense account is recorded in the account as a debit.

An increase in the capital account is recorded as a credit.

Paid cash for an ad in the local newspaper.

A business that performs an activity (mowing the lawn....) for a fee is called

Transferring information from a journal entry to a ledger account is called

A decrease in owner's equity resulting from the operation of a business (Rent, ...) is called

An endorsement indicating a new owner of a check is called

The amount remaining after the value of liabilities is subtracted from the value of assets is

The debit part of a journal entry must always equal the credit part.

A journal entry consists of

An amount recorded on the right side of a T Account is called

The balance of a/an expense account is normally a credit.

The order in which accounts are listed in the ledger is

The accounting equation is most often stated as

Paid cash for insurance.

This accounting concept is applied when a source document is prepared for each transaction

It is legal to postdate (future date) a check.

A concept applied when a business's finances is recorded separately from the personal finances

The side of the account that is increased is called the 

An endorsement restricting further transfer of a check's ownership is called

Sold services on account.

Bought supplies from Office Max using a Debit Card.

The account Cash is classified as a/an Asset

A business paper such as a check stub from which information is obtained for a journal entry is

Double-ruled lines are drawn under the totals of the journal page. 

On a bank reconciliation, outstanding checks are subtracted from the bank's balance.

Recording transactions in a journal is called

A decrease in an asset account is recorded in the account as a credit.

The balance of the capital account is normally a debit.

A journal amount column headed with an account title such as Cash or Sales is called

Paid cash on account to ABC Co.

A decrease in a liability account is recorded in the account as a debit.

An amount owed by a business is called

Received cash from sales.

The account used to summarize the owner's equity is called

An increase in owner's equity resulting from the operation (selling) of a business is called

A list of accounts showing the arrangement of the accounts in a ledger is called

The account Sales is classified as a/an Asset.

Paid cash to the owner for personal use.

The balance if any liability account is normally a debit.