Questions from College Accounting

Q: Define assets, liabilities, owner’s equity, revenues, and expenses

Define assets, liabilities, owner’s equity, revenues, and expenses.

Q: Describe a transaction that resulted in each of the following entries affecting

Describe a transaction that resulted in each of the following entries affecting the accounting equation.

Q: Describe a transaction that resulted in the following changes in accounts:

Describe a transaction that resulted in the following changes in accounts: a. Rent Expense is increased by $1,050, and Cash is decreased by $1,050. b. Advertising Expense is increased by $835, and Acc...

Q: What are footings in accounting?

What are footings in accounting?

Q: How are the three financial statements shown in this chapter connected?

How are the three financial statements shown in this chapter connected?

Q: What is a compound entry?

What is a compound entry?

Q: List two reasons why the debits and credits in the trial balance

List two reasons why the debits and credits in the trial balance might not balance.

Q: What do we mean when we say that capital, drawing,

What do we mean when we say that capital, drawing, revenue, and expense accounts are under the umbrella of owner’s equity?

Q: Explain how a trial balance and a balance sheet differ.

Explain how a trial balance and a balance sheet differ.

Q: Explain why the term debit doesn’t always mean “increase” and

Explain why the term debit doesn’t always mean “increase” and why the term credit doesn’t always mean “decrease.”