Homework SoursePlease answer the following in your own words 1 What is an a
Please answer the following in your own words.
1. What is an account?
2. Describes an account in its simplest form?
3. Define debits and credits and explain their use in recording business transactions
4. What the terms debiting and crediting mean?
5. Explain the concept of double entry-system.
6. List the basic steps in the recording process
7. What’s a journal and how does it contribute in the recording process
8. What’s a ledger and how does it help in the recording process
9. What’s a simple entry?
10. What’s a compound entry?
11. What’s is posting is and how does it help in the recording process
12. What ‘s a trial balance and its purpose
13. What are the limitations of a trial balance
14. What is the normal balance for the assets, owner’s drawings and expenses accounts
15. What is the normal balance for the liabilities, owner’s capital and revenues accounts
Solution
Hi As per Chegg Policy, only first four part can be answered in single question. Please post other parts seperately.
| Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. | |||||||||||||
| Hi As per Chegg Policy, only first four part can be answered in single question. Please post other parts seperately. | |||||||||||||
| 1. What is an account? | |||||||||||||
| Account is orgainzed statement of Financial expenditure and receipts for a particular period. Also, this includes balance of assets and liabilities as on particular date. | |||||||||||||
| 2. Describes an account in its simplest form? | |||||||||||||
| Record of: | |||||||||||||
| Income | |||||||||||||
| Expenditure | |||||||||||||
| Assets | |||||||||||||
| Liabilities | |||||||||||||
| 3. Define debits and credits and explain their use in recording business transactions | |||||||||||||
| A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. | |||||||||||||
| A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. | |||||||||||||
| 4. What the terms debiting and crediting mean? | |||||||||||||
| A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. | |||||||||||||
| A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. | |||||||||||||
| 5. Explain the concept of double entry-system. | |||||||||||||
| The double entry system of accounting or bookkeeping means that every business transaction will involve two accounts (or more) | |||||||||||||
