Solved

Match the Following Definitions and Terms by Placing the Number

Question 106

Matching

Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term:

Premises:

Responses:

Chart of accounts

An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry.

Account balance

The difference between total debits and total credits for an account including the beginning balance.

Trial balance

A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.

Debit

A decrease in an asset, dividend, and expense account and an increase in a liability, common stock, and revenue account; recorded on the right side of a T-account.

Note payable

A written promise to pay a definite sum of money on a specified future date.

Balance column account

A complete record of all transactions in one place that shows debits and credits for each transaction.

Credit

An increase in an asset, dividend, and expense account and a decrease in a liability, common stock, and revenue account; recorded on the left side of a T-account.

Journal

A file containing all accounts of a company and their balances.

Debt ratio

A list of all accounts used by a company and the identification number assigned to each account.

Ledger

The ratio of total liabilities to total assets; used to reflect the risk associated with the company's debts.