Exam 2: Recording Business Transactions

The account credited when cash is received from a customer on account is:

A trial balance is a list of all of a company's accounts with their account numbers.

Accounting transactions are first recorded in a book or record called a:

All revenue accounts normally have a credit balance.

The normal balance of a liability account is a and the normal balance of the common shares account is a .

An owners' investment of land and a building into the business would include a:

A dividend account is known as a contra equity account.

The entry to record the purchase of supplies on account would include a:

The purchase of a building with a down payment of cash and the signing of a note payable for the remainder would include a debit to both the asset Building, and a credit to the asset Cash and the liability Note Payable.

The costs of operating a business are usually called: