AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C3 Describe a ledger and a chart of accounts.
Topic: Ledger and Chart of Accounts
226.
_____________________________ requires that each transaction affect, and be recorded
in, at least two accounts. It also means that total amounts debited must equal total amounts
credited for each transaction.
Double-entry accounting
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits
227.
The _____________________ is found by determining the difference between total debits
and total credits for an account, including any beginning balance.
account balance
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Topic: The Account and Its Analysis
228.
To increase an asset account we would _______________ it and to increase a liability
account, we would ______________ it.
debit; credit
Answers need to appear in the order shown above.
AACSB: Communication
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits
229.
Funky Music purchased $25,000 of equipment for cash. The Equipment asset account is
_______________ for $25,000 and the cash account is _______________ for $25,000.
debited; credited
Answers need to appear in the order as shown above.
AACSB: Analytic
AICPA: BB Industry
AICPA: FN Decision Making
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Topic: Debits and Credits
230.
Jackson Brown Footwear had total liabilities of $130 million and total assets of $375
million. Its debt ratio was _______________.
34.7%
Debt Ratio = Total Liabilities/Total Assets
Debt Ratio = $130 million/$375 million = 34.7%
