ACCt 2113 - Unit 2

Choose the statement below that correctly explains a general journal. A journal is a record of all of the accounts in a business and includes their identifying account number. A journal is a record keeping device that is used to monitor customer account balances. A journal is a complete record of each transaction in one place and includes the debit and credit of each transaction. correct

A journal is a complete record of each transaction in one place and includes the debit and credit of each transaction. correct

The correct definition of an "account" includes which of the following? A customer's purchase order for buying merchandise. A record of increases and decreases in a specific asset, liability, equity, revenue, or expense. A bank report listing checks written and deposits made during a month. A cashier's sales register receipt showing total dollars of sales made.

A record of increases and decreases in a specific asset, liability, equity, revenue, or expense.

Which of the following is the best definition of a source document in the accounting process? A) A source document identifies and describes transactions and is the basis for entering an event into the accounting system. correct B) A source document is used to determine who hired an employee that is assigned the duty of entering transactions into the accounting process. C) A source document shows all the information about the legal rights a company has in relation to when it should pay a bill.

A) A source document identifies and describes transactions and is the basis for entering an event into the accounting system. correct

Notes receivable are a(n)

Asset

Which of the following statements is the best definition of an asset? Assets represent the owner's claims against a company. Assets are the distributions to the owners of a company. Assets are resources owned or controlled by a company and that have expected future benefits. Assets are claims against the company.

Assets are resources owned or controlled by a company and that have expected future benefits.

Which of the following best and fully describes a general ledger? Multiple choice question. A) The general ledger combines sales and expenses to determine the net income of a business. B) The general ledger is a record containing all accounts used by a company. C) The general ledger is a record of all transactions in alphabetical order. D) The general ledger describes all liability accounts.

B) The general ledger is a record containing all accounts used by a company.

Assets

Cash Accounts Receivable Prepaid Insurance Office Equipment Building Land

Source document in an accounting system

Checks Purchase order Payroll records Sales receipt

Cash can take many forms. From the lists of items below, choose the one which includes only items that would be defined as cash. A) Checks, money orders, supplies B) Checks, coins, accounts payable C) Coins, accounts receivables, checks D) Coins, checks, money orders

D) Coins, checks, money orders

True or false: Assets are claims by creditors against the company.

False

Select the statement below that best defines prepaid accounts. Prepaid accounts are assets that represent prepayments of future expenses. Prepaid accounts reflect a company's cash balance and include currency, coins and money orders. Prepaid accounts are expenses and are increased with a credit. Prepaid accounts are liabilities that are due within a specified time period.

Prepaid accounts are assets that represent prepayments of future expenses.

The general ledger can be used to determine which of the following: (Check all answers which apply) common and unique accounts used by a business. all accounts used by a company and their balances. a complete record of each transaction in one account. increases and decreases in all accounts in a business.

common and unique accounts used by a business. all accounts used by a company and their balances. increases and decreases in all accounts in a business.

An account is a record of increases and ________ in a specific asset, liability, equity, revenue or expense.

decreases