Exam 2: Analyzing and Recording Transactions

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Provided below is a list of definitions and terms. Match them by placing the letter that identifies the best definition in the blank space next to each term. $\begin{array} { l | l } \hline \text { A. } & \begin{array} { l } \text { An increase in an asset, owner withdrawal, and expense account, and a decrease in a } \\\text { liability, owner's capital, and revenue account; recorded on the left side of a T- } \\\text { account. }\end{array} \\\hline \text { B. } & \begin{array} { l } \text { A decrease in an asset, owner withdrawal, and expense account, and an increase in a } \\\text { liability, owner's capital, and revenue account; recorded on the right side of a T- } \\\text { account. }\end{array} \\\hline \text { C. } & \text { A written promise to pay a definite sum of money on a specified future date. } \\\hline \text { D. } & \begin{array} { l } \text { The difference between total debits and total credits for an account including the } \\\text { beginning balance. }\end{array} \\\hline \text { E. } & \begin{array} { l } \text { A list of accounts and their balances at a point in time; the total debit balances shoul } \\\text { equal the total credit balances. }\end{array}\end{array}$ $\begin{array} { | l | l | } \hline \text { F. } & \begin{array} { l } \text { A list of all accounts used by a company and the identification number assigned to } \\\text { each account. }\end{array} \\\hline \text { G. } & \begin{array} { l } \text { The ratio of total liabilities to total assets; used to reflect the risk associated with the } \\\text { company's debts. }\end{array} \\\hline \text { H. } & \begin{array} { l } \text { An account with debit and credit columns for recording entries and another column } \\\text { for showng the balance of the account after each entry. }\end{array} \\\hline \text { I. } & \begin{array} { l } \text { A chronological record of each transaction in one place that shows debits and credits } \\\text { for each transaction. }\end{array} \\\hline \text { J. } & \text { A record containing all accounts of a company and their balances. } \\\hline\end{array}$