Accounting /POA Sec 3 Chap 4 Quiz

POA Sec 3 Chap 4 Quiz

Accounting8 CardsCreated 2 months ago

This deck covers key concepts from Chapter 4 of Principles of Accounts, focusing on ledger accounts and the double-entry system.

The basic unit to record all business transaction is called a _______

ledger account
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Key Terms

Term
Definition
The basic unit to record all business transaction is called a _______
ledger account
The effect of each transaction is recorded in either the ________ or _______ column of each ledger accounty
equal; two
The double entry recording rule states that for every transaction, total debits must ________ total credits. In addition, every transaction affects at least ________ ledger accounts
debit; credit
For assets, does a debit or credit entry represent an increase or decrease to the element
increase; decrease
For equity, does a debit or credit entry represent an increase or decrease to the element
decrease; increase
For expenses, does a debit or credit entry represent an increase or decrease to the element
increase; decrease

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TermDefinition
The basic unit to record all business transaction is called a _______
ledger account
The effect of each transaction is recorded in either the ________ or _______ column of each ledger accounty
equal; two
The double entry recording rule states that for every transaction, total debits must ________ total credits. In addition, every transaction affects at least ________ ledger accounts
debit; credit
For assets, does a debit or credit entry represent an increase or decrease to the element
increase; decrease
For equity, does a debit or credit entry represent an increase or decrease to the element
decrease; increase
For expenses, does a debit or credit entry represent an increase or decrease to the element
increase; decrease
For income, does a debit or credit entry represent an increase or decrease to the element
decrease; increase
For liabilities, does a debit or credit entry represent an increase or decrease to the element
decrease; increase