ACC 221 Exam 1
in all asset accounts, if the amount is placed on the right (credit) side of the account, the balance in the account is decreased
true
in an accounting system that uses debits and credits, only positive numbers will be put into the accounts
true
the sequence of steps a company's accounting system goes through each accounting period is called the accounting cycle
true
the temporary accounts should always have a zero balance on the post-closing trial balance
true
Asset accounts track the dollar amount of a physical asset and who has a claim to that physical asset
False
a company's accounting period must must always be one month long
false
a transaction which decreases the retained earnings account must always decrease an asset account to keep the accounting system in balance
false
all entries must affect both the asset side and the liabilities + equity side of the accounting equation for the accounting system to stay in balance
false
as a result of the closing process, all general ledger accounts will be reset to zero
false
entries are posted from the general journal to the trial balance
false
the balance sheet is produced from the account balances shown in the general journal
false
the collection of cash from a customer will always result in an increase in retained earnings
false
the common stock account is decreased by a debit; while the retained earnings account is increased by a debit
false
the common stock account tracks the owners' claim to assets that result from the operation of the business
false
the debit side of an asset account is the left side and the debit side of the liability account is the right side
false
the largest transaction occurring during the accounting period is always entered first in the general journal
false
the note payable account is increased by a debit entry
false
the post-closing trial balance should be prepared after the income statement is prepared but before the balance sheet is prepared
false
the retained earnings account is an asset account similar to the inventory account
false
the retained earnings account is increased by a debit and decreased by a credit
false
when a transaction increases a company's accounts recevable account the retained earnings account must be decreased to keep the accounting system in balance
false
during the closing process for expense accounts, the retained earnings account is debited, which decreases retained earnings
true
during the closing process for revenue accounts, the retained earnings account is credited, which increases retained earnings
true
for each entry in the general journal, the total dollar amount of the debits and the total dollar amounts of the credits must always be equal
true
in a traditional accounting system all entries must be first put in the general journal
true
in all asset accounts, if the amount is placed on the left (debit) side of the account, the balance in the amount is increased
true
in all liability accounts and all in equity accounts, if the amount is placed on the left (debit) side of the account, the balance in the account is decreased
true
in all liability accounts and all in equity accounts, if the amount is placed on the right side (credit) side of the account, the balance in the account is increased
true
the after close balance for both revenue and expense account should always be zero balance
true
the balance sheet is a point in time financial report
true
the balance sheet is produced from the account balances shown in the general ledger
true
the credit side of all accounts is the right side
true
the equipment account is increased by a debit entry
true
the inventory account is decreased by a credit entry
true
the main purpose of equity accounts is to keep track of owners' claims to an organization's assets
true
the main purpose of liability accounts is to keep track of non-owners' claims to an organization's assets
true
the payment of wages to employees for work they performed during the current accounting period will result in a credit to the cash account
true
the primary reason the accountant prepares a trial balance is to determine if the accounting system is in balance
true
the retained earnings account is similar to the common stock account, in that they are both owners' claim to assets accounts
true
the retained earnings account tracks the owners' claim to assets that result from the operation of the business
true
after certain types of transactions it is OK for the accounting system to have more Total Assests than Total Liabilities + Owners' Equity
False