self test accounting 3
an account will have a debit balance if the
total of the debit amounts exceeds the credits
posting
transfers journal entries to ledger accounts
The entire group of accounts maintained by a company is the ledger
true
A trial balance would only help in detecting which one of the following errors
a transposition error when transferring the debit side of the journal entry to the ledger
posting
accumulates the effects of journalized transactions in the individual accounts
An account is a part of the financial information system and described by the following
an account is a source document
Which of the following statements about an accounts is true?
an account is an individual accounting record of increases and decreases to a specific asset, liability, and owner's equity items
the first step in the recording process is to
analyze each transaction for its effect on the accounts
A complete journal entry includes all of the following except
the balance of the accounts to be debited and credited
Before posting a payment of $5,000, the Accounts Payable of Senator Company has a normal balance of $16,000. The balance after posting this transaction was
$11,000
The trial balance of Clooney Company had accounts with the following normal balances: Cash $5,000, Revenue $85,000, Salaries and Wages Payable $4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000, Common Stock $42,000; Dividends $15,000; Equipment $61,000. In preparing a trial balance, the total in the debit column is
$131,000
The trial balance of Kelso Company had accounts with the following normal balances: Cash, $8,000; Accounts Receivable, $6,000; Equipment, $10,000; Accounts Payable, $9,000; Common Stock, $15,000; Dividends, $500; Service Revenue, $7,000; Rent Expense, $1,000; Salaries and Wages Expense, $3,000; and Advertising Expense, $2,500. In preparing the trial balance, the total in the debit column is
$31,000
The expanded accounting equation is
A= L + CS- D + R-E
The debit and the credit columns of a trial balance each total $80,000. Which error may still exist?
a cash payment on account of $450 is incorrectly recorded as a cash payment on account of $450
The purchase of supplies on account should result in
a debit to supplies and a credit to accounts receivable
companies initially record transactions in the general journal in
chronological order
The ledger accounts should be arranged in
financial statement order
dollar signs are typically used only in the
financial statements and trial balance
debits
increase assets and decrease liabilities
A credit to a liability account indicates an
increase in the liability
credits
increase liabilities and decrease assets
a credit to a revenue account
indicates an increase in the revenues earned
a ledger
is a collection of the entire group of accounts maintained by a company
A trial balance
is al ist of accounts with their balances at a given time
entering transaction data in the journal is known as
journalizing
Unearned revenue account is a
liability
The chart of accounts is
listing of the accounts and the account numbers that identify their location in the ledger
On June 1, Diane Leno buys a copier machine for her business and finances this purchase with cash and a note payable. When journalizing this transaction, she will
prepare a compound entry
What is not a part of the recording process
prepare a trial balance
Companies prepare a trial balance at the end of an accounting period and it is useful in ...
preparing financial statements
The primary purpose of a trial balance is to
prove that the debits equal the credits after posting