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