Accounting Quiz 3

A general journal provides

A chronological record of transactions

An accountant has debited an asset account for $2,000 and credited a liability account for $1,000. What can be done to complete the recording of the transaction?

Credit a different asset account for $1,000

Which of the following statement is incorrect?

Expenses increase stockholders' equity

The equity of the accounting equation can be proven by preparing a

Trial balance

The procedure of transferring journal entries to the ledger accounts is called

Posting

Which of the following is incorrect?

A general ledger is referred to as the book of original entry because they are the first place the transactions are recorded in an accounting system

Which of the following statements is incorrect?

A trial balance is referred to as the book of final entry

Which of the following correctly identifies normal balances of accounts?

Assets Debit Liabilities Credit Common Stock Credit Revenues Credit Expenses Debit

If A&B Restaurant purchases equipment on account for $3,000, then

Assets and liabilities both increase by $3,000

Transactions are initially recorded in the

General journal

The Montric Restaurant owes BB tomatoes Inc. $5,000 on account. When the Montric Restaurant pays the debt, the transaction recorded on BB tomatoes Inc. will

Increase an asset $5,000 and decreases an asset $5,000

The restaurant decided to hire a cook for $15 per hour and the cook will work 40 hours a week. Which of the following correctly recorded the above transaction?

No transaction

The standard format of a general journal would not include

T-accounts

Which of the following is not an advantage of a computerized accounting system?

The computer can make a precise judgment on accounting issues