Podcast
Questions and Answers
Which of the following accounts is an asset? (Select all that apply)
Which of the following accounts is an asset? (Select all that apply)
Which of the following accounts is a liability? (Select all that apply)
Which of the following accounts is a liability? (Select all that apply)
Which of the following accounts is an equity? (Select all that apply)
Which of the following accounts is an equity? (Select all that apply)
Which of the following is a true statement about debits and credits? (Select all that apply)
Which of the following is a true statement about debits and credits? (Select all that apply)
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With double-entry accounting, each transaction requires:
With double-entry accounting, each transaction requires:
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Cash - __________
Cash - __________
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Accounts Payable - __________
Accounts Payable - __________
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Supplies - __________
Supplies - __________
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Accounts Receivable - __________
Accounts Receivable - __________
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Common Stock - __________
Common Stock - __________
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Professional Fees Earned - __________
Professional Fees Earned - __________
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Dividends - __________
Dividends - __________
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Salaries Expense - __________
Salaries Expense - __________
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The process of recording transactions in a journal is called:
The process of recording transactions in a journal is called:
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Which of the following statements is true?
Which of the following statements is true?
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Study Notes
Asset Accounts
- Prepaid advertising is classified as an asset.
- Other examples of assets include cash, accounts receivable, supplies, equipment, and land.
Liability Accounts
- Accounts payable is classified as a liability.
- Other types of liabilities include income tax payable, salaries payable, and unearned revenue.
Equity Accounts
- Common stock is classified as an equity account.
- Other components of equity include dividends, revenues, and expenses.
Debits and Credits
- A credit appears on the right side of an account, while a debit appears on the left side.
- Debits are used to increase assets, expenses, and dividend accounts.
- Credits are used to increase liabilities, revenue, and common stock accounts.
Double-Entry Accounting
- Each transaction must impact at least two accounts, ensuring that total debits equal total credits.
- This principle guarantees that the accounting equation remains balanced.
Journalizing
- The process of recording transactions in a journal is called journalizing.
Trial Balance
- The trial balance is prepared to ensure that debits and credits are equal in the general ledger.
- It acts as a tool to visualize the balance of accounts but is not a financial statement.
- The trial balance does not calculate net income and is prepared before financial statements.
Increasing Accounts
- To increase:
- Cash: Debit
- Accounts Payable: Credit
- Supplies: Debit
- Accounts Receivable: Debit
Additional Account Changes
- To increase:
- Common Stock: Credit
- Professional Fees Earned: Credit
- Dividends: Debit
- Salaries Expense: Debit
These points encapsulate fundamental accounting concepts essential for understanding how transactions impact financial statements.
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Description
Test your knowledge of asset, liability, and equity accounts with this quiz based on Chapter 2 of your accounting course. Each question will challenge you to identify the correct category for various accounts. Perfect for review before exams!
