Chapter 2: The Accounting Information System (The Double-Entry System) 1. Accounting systems are designed to show the increases and decreases in och tancial statement am in a separate record called an 2. A Is a group of accounts for a business and 3. A listing of all accounts available for use by a business entay is called a 4. Major account classifications for balance sheet accounts include and 5 and are major account classifications for accounts which are reported on an income statement 6. are resources owned by a business entity. 7. Debts owed by a business to outside creditors are called 8. An owner's right to the assets of the business is called or 9 and increase owner's equity 10. The using up of assets or consuming of services in the process of generating revenues results in to the account amounts 11. Amounts entered on the left side of an account are called entered on the right side of an account are called 12. Every transaction affects at least scounts 13. Invented in 1494 accounting requires that the sum of the dobits equal the sum of the credits for any journal entry which is a 14. Reductions to Retained Eamings are entered into an account called account 15. For a given fiscal period, the sum of all increases to an account is usually equal to or greater than the sum of all decreases to an account, so that normal account balances are usually positive rather than negative. Fill in the blanks in the chart below Increase Acets Decrease Acets Balance Sheet Accounts: Asset Liability Owner's Equity CS RE Dividends Income Statement Accounts: Revenue Expense 16. When joumalizing and posting errors are found the concept of may be applied to determine the best treatment. An error of a few dollars in recording an asset as an expense may be considered to be to a company with millions of dollars of assets 17. Two common types of errors are known as a (when the order of the digits is inadvertently altered) and a (when the entire number is mistakenly moved one or more spaces to the right or left) 18 analysis is used when one compares a financial statement tem account balance) with the same tom in a previous statement. This analysis can help to locato reporting errors as well as olfer suggestions for managerial improvement 19. What is a T Account and what are its 3 mandatory components? and 20. In regard to a companys Chart of Accounts, a numbering system is normally used so that new accounts can be added without affecting other account numbers