1. What is accounting?
2. What is a proprietorship?
3. Define capital.
4. How can a transaction affect only one side of the accounting equation?
5. What does “on account” mean?
6. What are the 3 sections of a balance sheet?
7. What types of accounts are listed on the left and right side of a balance sheet?
8. What 2 accounts are affected when a business pays cash for supplies?
9. Are revenue accounts increased on the debit side or credit side?
10. Are expense accounts increased on the debit side or credit side?
11. Are accounts payable a liability or an asset?
12. How would you classify supplies, as an asset or a liability?
13. Give an example of a source document.
14. Transactions are recorded in __________ order.
15. What is a receipt?
16. Why are source documents important?
17. When cash is paid for insurance, which account is listed on the first line of the
journal entry? The second line?
18. When supplies are bought on account, which account is listed on the first line of
the entry? The second line?
19. When cash is received from sales, which account is listed on the first line of the
entry? What about the second line?
20. When services are sold on account, which account is listed on the first line of the
entry? What goes on the second line?
21. Are dollar signs and cent signs used when writing on accounting paper?
22. What is file maintenance?
23. Define “proving cash.”
24. Which 2 amounts are compared when proving cash?
25. What are the 3 types of check endorsements? Define each one.
26. What is a bank statement?
27. Why would there be a difference between a bank’s records and the owner’s (also
known as a “depositor”) records?
28. A bank service charge is recorded as a _________ expense in the general journal.
29. What is a dishonored check?
30. Define EFT, both what the initial represent and the description of it.
31. What is a debit card?
32. What are 3 reasons a bank may dishonor a check?
33. What account is credited when EFT is used to pay cash on account?
34. What account is credited when a debit card is used to buy supplies?
35. What is a petty cash fund?
36. Why do businesses use petty cash funds?
37. What is a fiscal period?
38. What is a work sheet?
39. Why do accountants use worksheets?
40. What is a trial balance?