Additional Practice One - Ch 2 (Module 1)

List out the four financial statements

Balance Sheet

Statement of Cash Flows

Income Statement

Statement of Retained Earnings or Statement of Stockholder's Equity

Accounting equation

Assets = Liabilities + Stockholders' Equity

Debit means ______ & credit means _______

Left Right

What does normal balance mean?

A normal balance of a credit means that a credit entry increases the balance of thataccount, whereas a normal balance of a debit means that a debit entry increases the balance ofthat account

What is the normal balance of:
all asset accounts? Debit
all liability accounts? Credit
common stock? Credit
retained earnings? Credit
dividends? Debit
all revenue accounts? Credit
all expense accounts? Debit

Debit
Credit
Credit
Credir
Debit
Credit
Debit

What accounts make up stockholders' equity:

a) Common Stock
b) Retained Earnings

What is a journal?

An accounting record in which transactions are initially recorded in chronological order.

What is the general ledger?

The entire group of accounts maintained by a company is referred to collectively asthe ledger. The ledger provides the balance in each of the accounts as well as keeps track ofchanges in these balances. The general contains all the asset, liability, stockholders' equity,revenue, and expense accounts for a company.

What is the chart of accounts?

A list of every account that a company has.

What is the trial balance?

The trial balance lists accounts and their balances at a given time. A company usuallyprepares a trial balance at the end of an accounting period. The accounts are listed in the orderin which they appear in the ledger. Debit balances are listed in the left column and creditbalances in the right column. The totals of the two columns must be equal.

List 5 asset accounts:

Cash
Supplies
accounts receivable
notes receivable
equipment

List 5 liability accounts:

accounts payable interest payable mortgage payable bonds payable unearned revenue

List 2 revenue accounts:

sales revenue interest revenue

List 2 expense accounts:

depreciation expense

research and development expense