Accounting

Consistent with the ______________ recognition principle, companies record revenue at the time goods are provided to customers.

- Revenue

A list of all accounts and their balances at a particular date showing that debits equal credits is referred to as a(n) _________ ____________.

- trial balance

Indicate whether the normal balance of each account is a debit or a credit. 1.Cash 2.Service revenue 3.Salaries expense 4.Accounts payable 5.Equipment 6.Retained earnings 7.Utilities expense 8.Accounts receivable 9.Dividends 10.Common stock

1. Debit 2. Credit 3. Debit 4. Credit 5. Debit 6. Credit 7. Debit 8. Debit 9. Debit 10. Credit

T|F: A ledger provides a chronological record of all transactions affecting the firm.

False

T|F: All business events have an immediate and quantifiable effect on the accounting equation.

False

T|F: The two functions of financial accounting are to measure business activities and prepare tax returns.

False

Which of the following contains a list of transactions affecting each account and the account's balance? Account General journal General ledger

General Ledger

Which of the following represents a common advantage of a computerized accounting system? Prevents errors in the preparation of journal entries Journal entries are instantly posted to the ledger Ensures accuracy of all the accounts in the general ledger

Journal entries are instantly posted to the ledger

Which of the following are external transactions? Purchasing inventory from suppliers Borrowing money from the bank Paying salaries to employees Using supplies purchased last month

Purchasing inventory from suppliers Borrowing money from the bank Paying salaries to employees

A(n) ______ is maintained for each financial statement item, whereas a(n) ______ contains all of the accounts of the company. account; journal general ledger; journal account; general ledger journal; general ledger

account; general ledger

Accounts receivable are - liabilities. - assets. - stockholders' equity accounts. - a component of net income and retained earnings.

assets

A journal provides a summary of all the debits and credits made during the period. chronological record of all transactions affecting a firm. listing of all accounts used by a firm.

chronological record of all transactions affecting a firm.

The two components of stockholders' equity are assets and liabilities. revenues and dividends. common stock and retained earnings. retained earnings and notes payable.

common stock and retained earnings.

The types of accounts which affect retained earnings are - dividends. - revenues. - assets. - liabilities. - expenses.

dividends, revenues, & expenses

Credits increase revenues, whereas debits increase liabilities and stockholders' equity. expenses and dividends. assets and liabilities. common stock and retained earnings.

expenses and dividends.

The two roles of financial accounting are to: - report cost accounting information for internal decisions. - measure and report results to taxing authorities. - measure business activities of the company. - communicate information to external parties for decision making purposes.

measure business activities of the company. communicate information to external parties for decision making purposes.

The purpose of a general ledger is to - record all transactions for a particular item. -,provide in a single location the list of transactions affecting each account and the account's balance. - record a chronological listing of the accounts used by a particular company.

provide in a single location the list of transactions affecting each account and the account's balance.

Ursula Company's bookkeeper records revenue relating to a customer transaction. This indicates that the company received a cash payment from a customer. provided goods or services to a customer. signed a contract with a customer.

provided goods or services to a customer.

The purpose of a journal is to - record a chronological listing of every transaction for a company. - maintain a balance for each account. - record all transactions for a particular item.

record a chronological listing of every transaction for a company.

Match the Terms with the Descriptions: Terms: Trial Balance, Analyze Transactions, Journal, Post, Account a. Record of all transactions affecting a company b. Determin the dual effect of the business events on the accounting equation c. List of accounts and their balances d. Summary of effects of all transactions related to a particular item over a period of time e. Transfer balances from the journal to the general ledger.

- a. Journal - b. Analyze Transactions - c. Trial Balance - d. Account - e. Post

The type of information included in an account includes columns for debits and credits. a posting reference. a daily total. the account title.

- columns for debits and credits. - the account title.

Accounts on the left side of the accounting equation (assets) are increased with a(n) ___________ to the account, whereas accounts on the right side of the accounting equation are increased with a(n) __________.

- debit - credit

A transaction is initially recorded in the journal, and then subsequently posted to the general _________.

- ledger

The term debit means to place the entry on the Blank 1 of 2 hand side of the account, and the term credit means to place the entry on the Blank 2 of 2 hand side of the account. Listen to the complete question

- left - right

The process of transferring information from a journal entry to the specific accounts affected in the general ledger is referred to as Blank 1 of 1.

- posting

The process of transferring information from the journal to the ledger is referred to as posting. preparing adjustments. preparing journal entries. transaction analysis.

- posting

When a company performs services for a customer, and the customer agrees to pay for the services at a later date, the transaction is recorded in which account? Accounts receivable Deferred revenue Prepaid services Accounts payable

Accounts receivable

Which of the following is an external transaction? - Purchasing supplies from a vendor - Using supplies on hand - Earning revenues after cash is received

Purchasing supplies from a vendor

Which type of account is increased with a credit? Asset Dividend Revenue Expense

Revenue

Identify the three components of retained earnings. Revenues Dividends Expenses Assets

Revenues Dividends Expenses

T|F: An account is defined as a record of the business activities related to a particular item.

True