ACC Ch 2 Quiz

Debit Accounts payable, $500; credit Cash, $500

75.0% (debt ratio= tot liabilities/ tot assets) (300,000/400,000)

The balance column in a ledger account is:

A column for showing the balance of the account after each entry is posted.

A company's ledger is:

A record containing all accounts and their balances used by the company.

The accounting process begins with:

Analysis of business transactions and source documents.

Golddigger Services Inc. provides services to clients. On May 1, a client prepaid Golddigger Services $60,000 for 6-months services in advance. Golddigger Services' general journal entry to record this transaction will include a:

Credit to Unearned Management Fees for $60,000

Paul's Landscaping paid $500 on account for supplies purchased in the prior month. Which of the following general journal entries will Paul's Landscaping make to record this transaction?

Debit Accounts payable, $500; credit Cash, $500

Trial balance will be out of balance if

Entries do not match on both sides of equation

The credit purchase of a new oven for $4700 was posted to kitchen equipment as a $4700 debit and to Accounts Payable as a $4700 debit. What effect would this error have on the trial balance?

The total of the Debit column of the trial balance will exceed the total of the Credit column by $9400