Accounting Exam 2

in a journal, debits are entered first; then credits are entered and indented ________ (how much space)

1/2 inch

expenses are accounts that begin with which number?

5

the amount of the difference between the debits and credits recorded in a t account is called the

account balance

When preparing a journal entry for Office Equipment purchased on account, the credit should be to the ______________ account. Cash Accounts Receivable Accounts Payable Supplies

accounts payable

A chart of accounts includes: assets and liabilities owner's equity revenue and expenses all of the above

all of the above

The order of the flow of financial data through the accounting information systems is: analyze, journalize, post. post, journalize, analyze. journalize, analyze, post. analyze, post, journalize.

analyze, journalize, post

Journal entries should be posted to the general ledger ________ preparing a trial balance. after while before the month after

before

The account number used in the heading of the four-column account is taken from the ________ and is used in the posting process. chart of accounts trial balance balance sheet work sheet

chart of accounts

a list of all the accounts used by a business enterprise is called a

chart of accounts

transactions affecting more than two accounts are called

compound entries

when an incorrect entry has been journalized and posted, a _____ entry is required

correcting

an increase in the liability accounts payable account is recorded by a

credit

the right side of the t account is called the _______ side

credit

the information in the Posting Reference columns of the journal and the ledger accounts provides a link known as a

cross reference

posting from the journal to the ledger is done ______ or at frequent intervals

daily

a decrease in the liability accounts payable is recorded by a

debit

an increase in the asset cash is recorded by a

debit

the left side of the t account is called the _______ side

debit

the fact that each transaction has a dual effect on the accounting elements provides the basis for what is called

double-entry accounting

the process of entering totals in the debit and credit sides of a t account is referred to as

footing

a document that provides a day-by-day listing of transactions of a business is called a

general journal

a journal is commonly referred to as a _________ because it is here that the first formal accounting record is made

general journal

a ________ account allows the accountant to keep a running balance

general ledger

a complete set of all accounts used by a business is known as the

general ledger

A day-to-day listing of the transactions of a business is called a: ledge journal statement balance

journal

Entering transactions in a journal is called: journalizing posting writing transacting

journalizing

the act of entering transactions into a journal is called

journalizing

An income statement is normally prepared: daily weekly twice a week monthly

monthly

accounts that begin with the number "3" are

owner's equity

the process of copying debits and credits from the journal to the ledger accounts is called

posting

the normal balance of a liability account is on the _______ side

right / credit

the normal balance of a revenue account is on the ______ side

right / credit

drawing a line through the incorrect amount of account title and writing correct information above it is an example of the ______ method

ruling

a _____ error occurs when you move a number and decimal place to the right or left

slide

a document that provides information about a business transaction is called a

source document

Check stubs, receipt stubs, and copies of sales tickets can be called: invoices. source documents. accounts. ledgers.

source documents

a form or record used to keep track of the increases and decreases in each type of asset, liability, owner's equity, revenue, and expense is known as a

t account

A transposition error occurs when: you have copied a debit when it should have been a credit when the difference is equal to the amount of a specific transaction you add incorrectly the numbers in an entry are reversed

the numbers in an entry are reversed

a _______ error occurs when you use the right numbers but in the wrong order

transposition

a _______ is taken after transactions are posted to the general ledger accounts to be sure that debit and credit balances in the ledger are equal

trial balance

a list of all of the accounts showing the title and balance of each account is called the

trial balance