Question: A __________ is maintained for each financial statement item, where as a ___________________ contains all of the accounts of the company

Answer: account; general ledger

Question: The type of information included in an account includes?

Answer: The account title, columns for debits and credits

Question: The account equation is?

Answer: assets= liabilities+ stockholders’ equity

Question: Trial balance definition?

Answer: a trial balance is a list of all accounts and their balances showing debits=credits.

Question: Balance sheet definition?

Answer: A balance sheet presents assets, liabilities, and stockholders’ equity

Question: revenue recognition principle states that companies record revenue when?

Answer: At the time goods are provided to customers

Question: A chronological record of all economic events affecting a firm are recorded in a?

Answer: journal

Question: What contains a list of transactions affecting each account and the accounts balance?

Answer: general ledger

Question: What is an advantage of computerized accounting systems?

Answer: journal entries are instantly posted to the ledger

Question: Carnival Company issues common stock to investors for $50,000. Which of the following is used to record this transaction?

Answer: Debit cash; credit common stock.