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Bookkeeping Domain 2 Study Guide with correct Answers
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Bookkeeping Domain 2 Study Guide
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Bookkeeping Domain 2 Study GuideAssets have a natural debit balance. True or False? - Answer -True.
Accounts with a natural debit balance will ____ with a debit transaction and ____ with a
credit transaction. - Answer -Increase; Decrease
Expenses and dividends accounts have a natural ____ balance. - Answer -Debit.
Natural Credit balance accounts _____ with credit and _____ with debit. - Answer -
Increase; Decrease.
Natural Credit Balance accounts include..... - Answer -Liabilities, owner's equity,
revenue, and retained earnings.
Expenses are _______ while liabilities are _____ - Answer -Cost incurred; Debts owed.
How long are long term assets/fixed assets? - Answer -1+ years.
How long are short term assets/current assets? - Answer -Less than a year.
Examples of long term assets are..... - Answer -equipment, vehicle, computers,
buildings, and PP&E (Property, Plan, and Equipment).
Examples of current assets are..... - Answer -inventory, accounts receivable, and cash.
What is Notes Receivable? - Answer -Assets of an entity that represent the right to
receive the principal amount within in a promissory note from another party.
What is a promissory note? - Answer -A legally binding agreement that states that a
business is owed money and when payment is expected.
What 3 things makes an account, an uncollectible account? - Answer -1. The debtor has
filed for bankruptcy.
2. The transaction involved fraud.
3. The debtor cannot be located.
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