Understanding Double Entry Accounting System UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

Understanding Double Entry Accounting
System UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Chart of Accounts - Correct answers✔✔list of all accounts used by a business



Ledger - Correct answers✔✔a group of accounts



Double-entry accounting - Correct answers✔✔a system that recognizes the different sides of
business transactions as debits & credits



Debits (DR) - Correct answers✔✔an entry on the left side of the account



Credit (CR) - Correct answers✔✔an entry on the right side of the account



T account - Correct answers✔✔shows the dollar increase or decrease in an account due to a
transaction



Normal Balance - Correct answers✔✔the increase side of an account



Asset Account - Correct answers✔✔an account that is increased on the debit side and decreased
on the credit side



Liability & Owner's Equity Accounts - Correct answers✔✔accounts that are increased on the
credit side and decreased on the debit side