Accounting - Test 1 Recap

When an entry is made in the general journal...

the accounts to be credited should be indented

Which of the following is an example of an expense? (an owner withdrawal for personal use, the payment of a creditor on account, the payment of the monthly utility bill, or the receipt of cash from a credit customer)

the payment of the monthly utility bill

When an entry is made in the general journal...

accounts to be debited should be listed first

define revenue

amounts earned from the sale of goods or services

Debits are used to record increases in...

assets and expenses

Which of the following are considered outside users of financial accounting information? (employees, managers, owners, and banks)

banks

To arrive at an accurate balance on a bank reconciliation statement, a service charge should be...

deducted from the book balance

periodic reports issued by a company

financial statements

Financial statements do not communicate which type of information?

how long the business has been in operation

The financial activities of a business and the and the financial activities of the owners should be...

kept totally and completely separate