Make all necessary entries in books of original entry to properly record the above.
REVIEW QUESTIONS
ON THE SUBJECT OF
THEORY OF ACCOUNTS
PART II
1. Into what two general and what three special classes are accounts divided in double entry bookkeeping?
2. Define and give examples of personal, real, representative, and nominal accounts.
3. What is a merchandise account? What accounts are substituted for the merchandise account in modern bookkeeping? In what particular is the use of these accounts an improvement over the older method of using a merchandise account?
4. Name and define four classes of assets, giving examples of each.
5. Give two examples of fixed assets in one business which become floating assets in another business. Give two examples of floating assets in one business which become fixed assets in another business.
6. What are revenue receipts? revenue expenditures? What accounts are designated by the term revenue accounts?