The primary purpose of a trial balance is to debits and credits after posting prove the mathematical equality of the A debit to an account will always increase it; a eredit to an account will always 2. decrease it. 3. The collection of an account receivable will cause total assets to remain the same. 4 The purchase of office equipment on credit increases total assets and total liabilities S. Transactions are entered in the ledger accounts and then transferred to journals. The debits and credits in an entry must always equal. 6. 7. The normal balance of an account is usually found on the side which decreases the account balance. 8. The accounting cycle is a series of steps, all performed at the end of the accounting period, to analyze record, classify, summarize, and report useful financial information for the purpose of preparing financial statements. A trial balance is one of the financial statements usually published by a company. 9. 10. An adjusting entry is a journal entry made to record economic activity that has transpired buthas not been reflected in a transaction by the end of the period for which financial statements are to be prepared. The owners of a corporation are called stockholders. 11. The balance sheet can be described as a statement that shows a company's at a given moment and the sources of these resources. s resources 12. 13. The term "revenues" means the amount of money earned by a business from the sm of goods and services after the deduction of expenses 4. The payment of a liability causes an increase in stockholder's equity. 5. The statement of retained earnings shows the change in the value of the assets owned by a corporation at the end of a business year. The primary purpose of a trial balance is to debits and credits after posting prove the mathematical equality of the A debit to an account will always increase it; a eredit to an account will always 2. decrease it. 3. The collection of an account receivable will cause total assets to remain the same. 4 The purchase of office equipment on credit increases total assets and total liabilities S. Transactions are entered in the ledger accounts and then transferred to journals. The debits and credits in an entry must always equal. 6. 7. The normal balance of an account is usually found on the side which decreases the account balance. 8. The accounting cycle is a series of steps, all performed at the end of the accounting period, to analyze record, classify, summarize, and report useful financial information for the purpose of preparing financial statements. A trial balance is one of the financial statements usually published by a company. 9. 10. An adjusting entry is a journal entry made to record economic activity that has transpired buthas not been reflected in a transaction by the end of the period for which financial statements are to be prepared. The owners of a corporation are called stockholders. 11. The balance sheet can be described as a statement that shows a company's at a given moment and the sources of these resources. s resources 12. 13. The term "revenues" means the amount of money earned by a business from the sm of goods and services after the deduction of expenses 4. The payment of a liability causes an increase in stockholder's equity. 5. The statement of retained earnings shows the change in the value of the assets owned by a corporation at the end of a business year
