Exam 2: Recording Business Transactions

The purchase of an automobile with a cash down payment and a written promise to pay the balance in the future would include a:

On a trial balance the total of all debits must equal the total of all credits.

Paying a utility bill when received would:

In accounting, the process of posting is:

A record of all the changes in a particular asset during a period of time is found in a(n):

The Dividends account normally has a debit balance.

An organization's list of all its accounts and the related account numbers is called a:

The normal balance of an expense account is a while the normal balance of a revenue account is a .

A journal is a record of financial transactions and can be thought of as a diary; it shows a chronological listing of a business's accounting activities.

An owner investment of a building, valued at $100,000 with an $80,000 outstanding mortgage, transferring this asset into the business would:

The purchase of land for cash would:

The account credited when supplies are purchased on account is:

A trial balance that is "in balance" proves:

If the debit amount of an entry to record the purchase of supplies on account was not posted:

A chart of accounts is:

The retained earnings account represents the money invested by shareholders into the business since its inception.

The normal balance of a revenue account is a because revenues increase .

All shareholders' equity accounts typically have a credit balance except for dividends which are a debit.

Expenses increase shareholders' equity. That is why they are credits.

The normal balance of the Accounts Payable account is aaccount.