Question

Module 1: Chapter 2: Review Questions Assignment 1. Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts. 2. What is the difference between a note payable and an account payable? 3. List the steps in processing business transactions. 4. What kinds of transactions can be recorded in the general journal? 5. Are debits or credits typically listed in general journal entries? Are the debits or credits indented? 6. Should a transaction be recorded first in a journal or the ledger? Why? 7. What does a bookkeeper prepare a trial balance? 8. Identify the four financial statements of a business. 9. What information is reported in the balance sheet? 10. What information is reported in the income statement? I

Answer 1

Date Any 1. Provide the names of ture. - 19) Asset accounts lilosh at is the liquid collet and it is included under asset acwrest. ii) fixed assets, wil) Croodrill ev, Accounts kay Receable all are inclueled under osset accurnts aby Liability accounts i Creditors These are those prin to whom we purchase goods on Credit i Alwents lapble in kalory crittending is best amorting all one included under liability counts. as Equity cuents is laid in chital 1) Retained Earnings These are includes bandes equity cunts. Acant pezobls 2. Differs betwers note ragble and account negable :- Note pegable There are always short-term These can be shart termar long obligation to the busines term obligation to the business. It can never be conserted into Acant hazables can be always towerted into Rotes nezabbs. allans barzabales

Date et originates from the purchase of tradoble items or inventories. 3. Steps in prowling Sfon 1 Analyse first. In the general journal where chruble entry entry. The debited arc is listed on the first line It may also evolve in case of purchse of long live assets business transactions ore' and record transactions Stehe lost the trasections to the different leger cont. Steh 3 → Prepare en unadjusted triel bolore ben 4 Prepare adjusting envies at the end of the period stehst Prepare finchial Stevenants ive Trading, profit and Balonce sheet. General journal is a degbook os journal which is threations relating to adjustment enries, opening stock acurnting errors en Exemples of transactions recorded in the general journd are: Asser scles, Asset Purchse, Expuses alizone Depreciction et A sell B for B. too thini lig Ef B To soles An $roo always listed debits are left - side of the register. listed first and then the CREDITS. wed goods to When recording entries, debits useel being accountig is with the The DEBITS are

age. Date 1 / The debited amunt with the in the left The credited acurnt is usually incented right side first transaction should be because journal business trensection. 5 account credited The trial balance is prepared after hosting all is listed on the first line side of the register listed on the second line, and the credited amount is recorded of the register recorded in joural boric is the entry veord on the other hand, a ledger is the collection the debited or in the journal. The journal is the first steh of ocornting cycle. The leger is extension of journal, therefore thez rearded ofter journal. Z 그 A trial bolone is bookkeeting worksheet which the bolore of all lezers are contilec ito debit credit account column totols that are company properes a trial bolore every reporting periodically, usually at the end of heriod trersection to the jounds and simmerling L eared. A financial them on the ledger statements.

Date 1 There are There are four main finnial statements (1) Balance sheets (ii) Income Statements in Los-flow statement Steternet of sheschuldes equity و Stotenents ta a A balance sheet is a fincial Statement that reports a company's assets liabilities and shareholders equity. It is one three core finchich evaluate buliness. It shows what a comperny own ( assets) and oves I liabilities) Specific moment in time It is also Elled Statement of fincheial position' because it provides snapcht of your assets are liability. at a An inome Statinent reports a business's revenues, exprees and overall profit or specific heriod of time to begin a lest amount The Statement is great hoce finchial model as it requires the of information Blshet and cash flow statement Thus, in terms of information, the income Statement is a predecessor to the orther ture Core statements. from the