Is an informal report that lists accounts and their balances?
Accounting Terms (Unit 1)
| A | B |
|---|---|
| trial balance | An informal listing of the ledger accounts and their balances in the ledger to aid in proving the equality of debits and credits. |
| accounting period | The period of time for which an income statement is prepared. |
What does it mean when total of debits and credits are equal?
A debit to one account can be balanced by more than one credit to other accounts, and vice versa. For all transactions, the total debits must be equal to the total credits and therefore balance.
What is a list of accounts and their balances at a given time called?
A trial balance is a list of accounts and their balances at a given time.
Which of the following refers to the balance an account is always supposed to have?
Explanation: Accounts are expected to have either debit or credit balance, depending on their classification. Accounts have normal balances if the balances at the end of a period are as expected. Assets accounts are expected to have debit balances, while equity and liabilities accounts should have credit balances.
What is the statement that lists the individual accounts with their balances?
General ledger transactions are a summary of transactions made as journal entries to sub-ledger accounts. The trial balance is a report that lists every general ledger account and its balance, making adjustments easier to check and errors easier to locate.
What is the normal balance of asset?
DEBIT
Recording changes in Income Statement Accounts
| Account Type | Normal Balance |
|---|---|
| Asset | DEBIT |
| Liability | CREDIT |
| Equity | CREDIT |
| Revenue | CREDIT |
What is the normal balance of supplies?
Acct1: Classifying Accounts and Normal Balance Sides
| A | B |
|---|---|
| The normal balance side of SUPPLIES | Debit |
| The normal balance side of PREPAID INSURANCE | Debit |
| The normal balance side of ACCOUNTS RECEIVABLE–SAM ERICKSON | Debit |
| The normal balance side of ACCOUNTS PAYABLE–STAPLES | Credit |