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  • Accy 161 Midterm Exam #2 - Form Aanswer Key October 28 ...

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ACCY 161 Midterm Exam #2 - FORM A ANSWER KEY October 28 , 2003 Part I: 40 points two points each. Answer each question as indicated and put your answer on the Scantron. I would also recommend that.

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A balance sheet is a statement of a business's assets, liabilities, and owner's equity as of any given date.

Debits increase asset or expense accounts, while credits increase liabilities, equity, and revenue accounts. Every transaction requires a debit to one or more accounts and a matching credit to others for the books to balance.

The account used to summarize the Owner's Equity or O.E. in a business is called Capital. The Capital account is an O.E. account.

Keeping accurate journal entries can help accountants prepare and analyze balance sheets and income statements. The multiple types of journal entries may include: Simple journal entries: Include one debit and one credit. Compound journal entries: Include over two accounts or over one credit and one debit.

The Posting Reference (PR) column is filled when the journal entry balances are posted to the subsequent ledger accounts. Therefore, it is a cross-reference between the journal and the ledger. The PR column points to the page number or line number in the journal where a transaction was entered.

Assets and expenses have natural debit balances. This means that positive values for assets and expenses are debited and negative balances are credited.

Double-entry accounting is a bookkeeping system that requires two entries — one debit and one credit — for every transaction.

The main accounts that influence owner's equity include revenues, gains, expenses, and losses. Owner's equity will increase if you have revenues and gains. Owner's equity decreases if you have expenses and losses. If your liabilities become greater than your assets, you will have a negative owner's equity.

Debits increase asset, loss and expense accounts; credits decrease them. Credits increase liability, equity, gains and revenue accounts; debits decrease them.

A compound journal entry is an entry involving more than two accounts. In a compound journal entry, there are two or more debits, credits, or both. Rather than making separate journal entries for the same transaction, you can combine the debits and credits under one entry.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232