Questions from Financial Accounting

Q: When are credits increases? When are credits decreases?

When are credits increases? When are credits decreases?

Q: Identify which types of accounts have a normal debit balance and which

Identify which types of accounts have a normal debit balance and which types of accounts have a normal credit balance.

Q: What are source documents? Provide examples of source documents that a

What are source documents? Provide examples of source documents that a business might use.

Q: Where are transactions initially recorded?

Where are transactions initially recorded?

Q: What are the four parts of a journal entry?

What are the four parts of a journal entry?

Q: What is the purpose of the trial balance?

What is the purpose of the trial balance?

Q: If total debits equal total credits on the trial balance, is

If total debits equal total credits on the trial balance, is the trial balance error-free? Explain your answer.

Q: What is the calculation for the debt ratio? Explain what the

What is the calculation for the debt ratio? Explain what the debt ratio evaluates.

Q: What is the difference between the trial balance and the balance sheet

What is the difference between the trial balance and the balance sheet?

Q: What is the accounting equation? Briefly explain each of the three

What is the accounting equation? Briefly explain each of the three parts.