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22 terms

chapter 2

STUDY
PLAY
The accounting process begins with:
analysis of business transactions and source documents
Unearned revenues are:
Liabilities created when a customer pays in advance for products or services before the revenue is earned.
The process of transferring general journal information to the ledger is:
Posting.
A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a:
Journal.
A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a:
Trial balance
Accounts receivable:
are increased by credit
decreased by debit
Accounts payable is a ________ account
liability
Equity accounts are:
1. owner's capital
2. Owner's withdrawals
3. Revenues
4. Expenses
on a T chart for assets, ______ for increases, and ______ for decreases.
Debit, Credit
On a T chart for Liabilities, _______ decreases, and ______ increases.
Debit, credit
On a T chart for Equity, _________ decreases, and ________increases.
Debit and Credit
owner's capital has a normal balance of:
Credit
Owner withdrawals has a normal balance of:
Debit
Revenues have a normal balance of:
Credit
Expenses have a normal balance of:
Debit
Service fees earned appear on the:
Income statement
Cash withdrawal by owner appears on the:
Statement of owner's equity
Office supplies is on the:
Balance Sheet
Cash is on the:
Balance Sheet
Prepaid Rent is on the:
income statement
A-assets
W-withdrawals
E-Equity
have debit normal balances
L-Liabilities
C-Capital
R-Revenues
have credit normal balances