Solved

Match the Following Definitions and Terms by Placing the Letter

Question 179

Matching

Match the following definitions and terms by placing the letter that identifies the best
definition to the term.

Premises:

Responses:

Debit

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

Debt ratio

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

Balance column account

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

Note payable

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

Trial balance

An increase in an asset and expense account, and a decrease in a liability, owner's capital,and revenue account; recorded on the left side of a T-account.

Ledger

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

Credit

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

Chart of accounts

A decrease in an asset and expense account, and an increase in a liability, owner's capital,and revenue account; recorded on the right side of a T-account.

Journal

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

Account balance

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