Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 2-7

Purpose:

(L.O. 1 thru 7) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below:

Account	Journal
Chart of accounts	Journalizing
Common stock	Ledger
Compound entry	Normal balance
Credit	Posting
Debit	Retained earnings
Dividend	Simple-entry
Double-entry system	T-account
General journal	Three-column form of account
General ledger	Trial balance

Instructions

For each item below, enter in the blank the term that is described.

1. _____________________________________A record of increases and decreases in specific asset, liability, or stockholders' equity items.
2. _____________________________________The basic form of an account.
3. _____________________________________A form containing money columns for debit, credit, and balance amounts in an account.
4. _____________________________________A list of accounts and the account numbers which identify their relative location in the ledger.
5. _____________________________________The right side of an account.
6. _____________________________________The left side of an account.
7. _____________________________________An accounting record in which transactions are initially recorded in chronological order.
8. _____________________________________A journal entry that involves three or more accounts (more than one debit and/or more than one credit).
9. _____________________________________A journal entry that involves only two accounts (one ...