2.1: Concept Self-Check
- Page ID
- 20072
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Use the following as a self-check while working through Chapter 2.
- What is an asset?
- What is a liability?
- What are the different types of equity accounts?
- What is retained earnings?
- How are retained earnings and revenues related?
- Why are T-accounts used in accounting?
- How do debits and credits impact the T-account?
- What is a chart of accounts?
- Are increases in equity recorded as a debit or credit?
- Are decreases in equity recorded as a debit or credit?
- Does issuing shares and revenues cause equity to increase or decrease?
- Are increases in the share capital account recorded as a debit or credit?
- Are increases in revenue accounts recorded as debits or credits?
- Do dividends and expenses cause equity to increase or decrease?
- Are increases in the dividend account recorded as a debit or credit?
- Are increases in expense accounts recorded as debits or credits?
- How is a trial balance useful?
- What is the difference between a general journal and a general ledger?
- Explain the posting process.
- What is the accounting cycle?
NOTE: The purpose of these questions is to prepare you for the concepts introduced in the chapter. Your goal should be to answer each of these questions as you read through the chapter. If, when you complete the chapter, you are unable to answer one or more the Concept Self-Check questions, go back through the content to find the answer(s). Solutions are not provided to these questions.