Transaction Analysis: Fill In the Blanks
John starts business with $100,000 in cash. John's capital account will be
John purchases supplies for $500 in cash. The supplies account will be
John purchases merchandise for $5,000 on account. The
account will be credited.
Merchandise are sold to a customer on account. The sales account will be
$4,800 in cash is paid to a creditor and a cash discount of $200 is received. The accounts payable account will be debited by
$800 in cash is paid to a worker as their monthly salary. The account to be debited is
Supplies costing $100 are used during the month. The
account will be debited and the supplies account will be credited.
Accounts in which transactions relating to individuals or organizations are recorded are known as
account is debited when owner of the business withdraws cash or another asset for their personal use.
Classification of accounts as real, nominal, and personal accounts is known as the
Classification of accounts as assets, liabilities, capital, revenues, and expenses is known as the
accounts are temporary accounts and are closed at the end of the accounting period.
A process that involves finding the names and nature of accounts in a transaction and applying the rules of debit and credit on those accounts is known as
When revenue/income is earned, its account is
are also known as balance sheet accounts.
When an expense is incurred, its account is
An increase in liability is
An increase in assets is
A decrease in liability is
A decrease in assets is
Under the double-entry system of bookkeeping, every transaction has
Every debit has a corresponding
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.