21) A trial balance is a list of all of the accounts with their balances.
22) Expenses are increases in stockholders' equity caused by providing goods or services for customers.
23) Which of the following is the detailed record of the changes in a particular asset, liability, or stockholders' equity?
A) Journal
B) Trial balance
C) Ledger
D) Account
Learning Objective 2-2
1) Debit refers to the right side of the T-account, and credit refers to the left side.
2) In the standard accounting system, we use double entry accounting, which means we record the dual effects of each transaction.
3) An asset account is increased by a debit.
4) A stockholders' equity account is increased by a debit.
5) A liability account is increased by a debit.
6) Which of the following accounts increases with a credit?
A) Cash
B) Common stock
C) Accounts receivable
D) Prepaid expenses
7) Which of the following accounts decreases with a credit?
A) Cash
B) Common stock
C) Accounts payable
D) Retained earnings