Accounting (true & false)

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

A transaction recorded in a journal is not considered a permanent record.

False

When an entry in an amount column is an even dollar amount, either "00" or "--" can be entered in the cents column.

False

Payments for advertising, equipment repairs, utilities, and rent are liabilities.

False

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

False

The accounting equation is most often stated as Assets + Liabilities = Owner's Equity

False

The balance of an account decreases on the same side as the normal balance side.

False

The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit.

False

The owner's equity account is increased on the debit side because the owner's capital account has a normal balance on the debit side.

False

The steps for posting are to write the date, the journal page, the amount, and the balance.

False

To correct an error in a journal, one can simply erase the incorrect item and write in the correct item.

False

Increases in revenue accounts are recorded as credits because they increase the owner's capital account.

True

Keeping separate the financial records for a business and for its owner's personal belongings is an application of the Business Entity accounting concept.

True

Maya Abbasi, Capital is decreased with a debit.

True

The right side of a liability account is the normal balance side because liabilities are on the right side of the accounting equation.

True

When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.

True

When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.

True

Each liability account has a normal debit balance.

False

The two steps for opening an account are writing the account title and recording the balance.

False

A list of accounts used by a business is a chart of accounts.

True

Businesses use accounts to summarize all the information pertaining to a single item.

True

In double-entry accounting, each transaction affects at least two accounts.

True

Increases in expense accounts are recorded as credits because they increase the owner's capital account.

True

The accounting number is placed in the Post. Ref. column of the journal as the last step in the posting procedure.

True

The most common type of withdrawal by an owner from a business is the withdrawal of cash.

True

The normal balance side of an Accounts Payable account is a credit.

True

A journal shows, in one place, all the changes in a single account.

False

An amount recorded on the left side of a T account is a credit.

False

Every business uses the same journal to record transactions.

False

Increases in revenue accounts are recorded as debits because they increase the owner's capital account.

False

Maya Abbasi, Drawing is decreased with a debit.

False

Detailed information about changes in owner's equity is needed by owners and managers to make sound business decisions.

True

The source document for all cash payments is a check.

True

The source document used when supplies are bought on account is a memorandum.

True

Transactions are recorded in a journal in chronological order.

True

When two asset accounts are changed in a transaction, there must be an increase and a decrease.

True

Withdraws are assets taken out of a business for the owner's personal use.

True

A transaction for the sale of goods or services results in a decrease in owner's equity.

False

A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.

True

A drawing account is increased by debits and decreased by credits.

True

A group of accounts is called a ledger.

True

Common accounting practice is to record withdrawals as debits directly in the owner's capital account.

False

A negative amount for net worth would reflect more debt than assets, something a creditor would favor.

False

A withdrawal is an expense.

False

Accounts receivable accounts are increased with a credit.

False

Asset accounts decrease on the debit side.

False

Business ethics are the principles of right and wrong that guide an individual in making decisions.

False

Cash is an asset account with a normal credit balance.

False

The posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger.

Flas

A receipt is the source document for cash received from transaction other than sales.

True

Accounts payable accounts are increased with a credit.

True

After each transaction, the accounting equation must remain in balance.

True

An expense is a decrease in owner's equity resulting from the operation of a business.

True

Before a transaction is recorded in the records of a business, it is analyzed to determine which accounts are changed and how.

True

Cash is always proved at the end of a month.

True

Double lines are ruled across a journal's amount column to indicate the totals have been verified as correct.

True


Set pelajaran terkait

CSS Code, HTML Tags for Code.org, HTML Tags **advanced**

View Set

woordenschat Frans Rally 1-1 Circuit rouge

View Set

Biol120 Lecture Ch, 11: Animal Diversification

View Set

Cyber War Gaming Midterm Two Review

View Set

psych 2400 exam 2 revel questions

View Set

Pharmacology Semester 3 Midterm 2

View Set

CCBC CRJU 101 modules 1-6 midterm exam

View Set