Accounting II - Chapter 1 Review Exam | Questions with 100% Correct Answers | Verified | Latest Update 2026

Accounting II - Chapter 1 Review Exam |
Questions with 100% Correct Answers | Verified |
Latest Update 2026

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Practice questions for this set


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To encourage early payment, a seller may offer a cash discount, which allows
a deduction from the invoice amount.



Choose an answer



1 Liability 2 TRUE



3 TRUE 4 Ledger



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Terms in this set (32)

, Liability An amount owed by a business is called a(n)


Owner's equity The amount remaining after the value of all
liabilities is subtracted from the value of all assets is
called


Double-entry accounting The recording of debit and credit parts of a
transaction is called


Contra account An account that reduces a related account is called
a(n)


Ledger A group of accounts is called a(n)


Posting Transferring information from a journal entry to a
ledger account is called


Special journal A journal used to record only one kind of
transaction is called a


Debit memorandum A form prepared by the customer showing a price
deduction for purchases returns and allowances is
called a


File maintenance The procedure for arranging accounts in a general
ledger, assigning account numbers, and keeping
records current is called


Accounting equation An equation showing the relationship amount
assets, liabilities, and owner's equity is called