Act 201 Exam 1
paid creditor on account
AP -Cash
Billed client for services provided
AR -SR
T/F: The accounts in the general ledger are arranged in alphabetical order
F
T/F: The general ledger is a book of original entry
F
T/F: the general ledger contains all the asset and liability accounts, but no stockholders equity accounts
F
Accounting cycle in order.
1. analyze business transactions 2. journalize the transactions 3. post to ledger accounts 4. prepare a trial balance 5. journalize and post adjusting entries 6. prepare an adjusted trial balance 7. prepare financial statements 8. journalize and post closing entries 9. prepare a post-closing trial balance
a company might carry on many activities that do not represent business transactions such as: A. placing an order for merchandise with a supplier B. borrowing money from the bank C. using office supplies D. paying wages
A
What accounts go on the post closing trial balance sheet.
Only permanent accounts that would go on the balance sheet
T/F: Each account in the general ledger is numbered for easier identification
T
T/F: The general ledger is sometimes referred to as simply the ledger
T
incurred adv expense on account
adv expense -A/P
Morale Beaver company buys a $12,000 van on credit. This transaction will affect the...
balance sheet only
received cash for future services
cash -UR
received cash on account
cash -a/r
Internal users of accounting data include:
ceo ; supervisors; company officers
What are the three parts of the accounting process?
communicating, identifying, and recording
company borrowed money by signing a percent one year not
interest exp -interest payable
Monetary unit assumption
requires that only transaction data capable of being expressed in terms of money be included in the accounting records of the economic entity
paid salaries to employees
salaries and wages expense -cash