Game play 02

Assets are increased by debits and liabilities are decreased by credits.

The owner’s capital account is increased by credits

An account will have a credit balance if the total debit amounts exceed the total credit amounts

The ledger is the entire group of accounts maintained by a company

The basic steps in the recording process are (1) to analyze each transaction, (2) to enter the transaction in a journal, and (3) to transfer the journal entry to the appropriate ledger accounts

Transferring journal entries to the ledger accounts is called posting and should be per­formed in chronological order

Assets = liabilities + owner’s capital – drawings + revenues – expenses is a correct form of the expanded basic accounting equation

All economics events are Transactions

When the columns of the trial balance equal each other, it proves no errors occurred in recording and posting

The double-entry system helps ensure the accuracy of the recorded amounts and helps to detect errors