9-Weeks Study Guide
Terms to know:
1. Accounting
28. Proving cash
2. Proprietorship
29. Receipt
3. Liabilities
30. Sales invoice
4. Service business
31. Source document
5. Asset
32. Special amount column
6. Owner’s Equity
7. Transaction
8. Account
9. Capital
10. Balance sheet
11. Equities
12. Expense
13. Revenue
14. Sale on account
15. Withdrawals
16. Chart of accounts
17. Credit
18. Debit
19. Normal balance
20. T account
21. Check
22. Double-entry accounting
23. Entry
24. General amount column
25. Invoice
26. Journal
27. Memorandum
Short Answer
33. What is the accounting equation?
34. What are the three sections of a balance sheet?
35. When one side of the balance sheet is longer than the other, what adjustment must
be made?
36. Generally, when is revenue recorded?
37. What is the common abbreviation for debit? _________ credit? _______
38. Asset accounts have normal _______ balances.
39. Liability accounts have normal __________ balances.
40. The normal balance side of an expense account is the _______ side.
41. The normal balance side of a drawing account is the _______ side.
42. Explain #40-41.
43. When analyzing transactions into debit and credit parts, what is the first question
you ask?
44. What is the name of the account used to record revenue?
45. What is the name of the account used to record transactions when the owner takes
assets out of the business for personal use?
46. A journal lists transactions in what type of order?
47. Journal comes from the Latin word diurnalis meaning ___________.
48. Why does a business keep source documents for transactions on file?
49. What are the four parts of a journal entry?
50. Why do companies choose to use special amount columns in journalizing?
51. What are the three steps in proving a journal page?
52. What are the five steps in ruling a journal page?
53. What are the four steps in starting a new journal page?
54. What are the two steps in proving cash?
55. When does a company prove cash?
56. When is a journal ruled?
57. What are the five steps in ruling a journal at the end of the month?
58. How are errors corrected in accounting practices?
59. Words are abbreviated only in what situations?
60. Why should you use 0s in the cents column even though the amount is in even
61. How do you indicate addition or subtraction?
62. How do you indicate the totals have been verified as correct?
63. Why is neatness so important in accounting?
Be able to complete a balance sheet, analyze transactions using T accounts, and
complete journal entries. Also be able to prove and rule a journal.