Accounting Chapter 3 Test

a trial balance is a list of the accounts and account numbers

false

accounting period

the period of time for which an income statement is prepared

the posting reference column in The ledger is

used to record the journal and page number the transaction originated

a running balance is maintained in The ledger after each transaction is posted

true

the purpose of posting is to

update the account balances in the ledger

how are credits distinguished from debits in the journal?

indenting

business transactions are first recorded in the

journal

posting is performed by transferring information from the journal to the

ledger

to correct an error made in the journal prior to posting The ledger

line out the incorrect portion of the entry and write in the correction

revenue is traditionally recognized in the accounting records when

services are rendered

the proper format for journal entry includes all the following, except

the credit portion of the transaction is always first

journalizing

the process of recording a transaction entry into the journal

accounting cycle

the process that begins with the recording of business transactions into a journal and ends with the completion of a post-closing trial balance

calendar year

the twelve-month. A business chooses for his accounting year that runs from January to December

the informal listing of the ledger accounts and their balances in The ledger to aid in providing the equality of debits and credits is the

trial balance

the order of flow of accounting data is recording journal, Post in the a ledger, prepare a trial balance

true

the time period for which an income statement is prepared is called the accounting period

true

the trial balance listing is in the same order as the chart of accounts

true

transactions are listed in chronological order in the journal

true

fiscal year

an accounting period that runs for any 12 consecutive months

trial balance

an informal listing of the ledger accounts and their balances in The ledger to aid in proving the equality of debits and credits

the proper sequence used in recording a business transaction is

analyze, journalize, post, record the account balance, and complete the reference column in the journal

Posting

the transferring, copying, or the recording it information from a journal to a ledger

the trial balance proves the equality of debits and credits

true

compound journal entry

a journal entry that affects more than two accounts

general journal

a listing of business transactions in chronological order

cross-referencing

adding to the pr column of the journal that account number of The ledger account that was updated from the journal

if the debit and the credit totals a trial balance are not equal, it could be due to the following type of error

anchor that calculating the debit side of a trial balance

when recording a transaction in a journal, the account listed first is always the

debit

posting is the process of transferring information from the journal to the trial balance

false