Quiz Ch 02 – T-Accounts and the Left Side
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
On a T-account, what does the left-hand side represent?
On a T-account, what does the left-hand side represent?
When the total credits exceed the total debits in an account, it will have a credit balance.
The basic principle of accounting dictates that every business transaction involves a debit and a credit.
A measurable financial event is a transaction for a business.
The journal is a collection of all T-accounts along with their corresponding balances.
An account’s balance is the result of subtracting its total credits from its total debits.
With double-entry accounting, a transaction has an impact on exactly two accounts.
A double-entry accounting system captures the dual impact of transactions on the entity.
It’s important to provide a brief description of the transaction in each journal entry.
The preparation of a trial balance is mandatory for financial reporting.