36 FARM ACCOUNTING 



28, 1917; and a Loss and Gain Statement for the year ended 

 February 28, 1917. 



REVIEW QUESTIONS 



1. Name three methods, anyone of which might be used in 



recording business transactions during a period of time. 



2. Which one of these methods is used more in practice? Which 



one is unscientific? WhyT 



3. Why is it considered advisable to learn the direct ledger ac- 



count method? 



4. How is bookkeeping assisted by the use of abbreviations ? 



Why is it necessary to know and understand the abbrevia- 

 tions used in bookkeeping T 



5. Define business transaction; value; property. 



6. What is capital? Distinguish between accounts of prop- 



erty and the proprietor's capital account. 



7. What is an account? What information should be shown 



in an account ? What is another title for the left-hand side 

 of an account? The right-hand side? 



8. What is a ledger? Illustrate the form of a ledger page. 



9. In opening a double entry set of books, what entry is made 



in the proprietor's capital account? Any resources owned 

 at the time of opening the books are shown on the books 

 in what way? How are liabilities shown at the time of 

 opening the books? 



10. What is true concerning the sum of the debits and credits 



resulting from any bookkeeping transaction? 



11. Why does a payment of $300 to redeem a note require a 



credit to cash account? a debit to notes payable ac- 

 count? 



12. When $300 cash is paid why is it not recorded in the cash 



account as a deduction from the debit side instead of an 

 addition to the credit side? 



13. What is the difference between a note payable and a mortgage 



payable account? 



14. When $6 is paid for the use of money, why is Cash account 



credited? Why is the proprietor's capital account debited? 



