ACCT ch.2 concept overview

The process of recording transaction in a journal is called:a) Postingb) Journalizingc) Recordingd) Transactioning

b) Journalizing

Indicate how to increase each of the accounts listed below.a) Common Stock - __________b) Professional Fees Earned - __________c) Dividends - __________d) Salaries Expense - __________

a) Common Stock - _Credit_b) Professional Fees Earned - _Credit_c) Dividends - _Debit_d) Salaries Expense - _Debit_

Which of the following accounts is a liability? multiple choice company truck, prepaid advertising, common stock, accounts payable

accounts payable

With double-entry accounting, each transaction requires: that at least three accounts are affected that the total debits equal the total debits. that at least two accounts are affected. that the total debits will equal the total credits.

that at least two accounts are affected. that the total debits will equal the total credits.

Which of the following is a true statement about debits and credits? multiple choice A debit always increases an account balance. A credit is on the right side of an account. A debit is on the right side of an account. A credit always decreases an account balance.

A credit is on the right side of an account. Correct

Indicate how to increase each of the accounts listed below. a) Cash - __________b) Accounts Payable - __________c) Supplies - __________d) Accounts Receivable - ________

Cash - _Debit) Accounts Payable - _Credit) Supplies - _Debit) Accounts Receivable - _Debit_

Which of the following statements is true?a) The trial balance is completed to ensure that debits and credits are equal in the General Ledger.b) The trial balance is completed after the balance sheet.c) The trial balance calculates net income for the period.d) The trial balance is a financail statement distributed to owners and investors.

a) The trial balance is completed to ensure that debits and credits are equal in the General Ledger.

Which of the following accounts is an equity? multiple choice company truck, prepaid advertising, common stock Correct, accounts payable

common stock

Which of the following accounts is an asset? multiple choice dividends, prepaid advertising, supplies expense, accounts payable

prepaid advertising