Act 201 Exam 1

paid creditor on account

AP -Cash

Billed client for services provided

AR -SR

T/F: The accounts in the general ledger are arranged in alphabetical order

F

T/F: The general ledger is a book of original entry

F

T/F: the general ledger contains all the asset and liability accounts, but no stockholders equity accounts

F

Accounting cycle in order.

1. analyze business transactions 2. journalize the transactions 3. post to ledger accounts 4. prepare a trial balance 5. journalize and post adjusting entries 6. prepare an adjusted trial balance 7. prepare financial statements 8. journalize and post closing entries 9. prepare a post-closing trial balance

a company might carry on many activities that do not represent business transactions such as: A. placing an order for merchandise with a supplier B. borrowing money from the bank C. using office supplies D. paying wages

A

What accounts go on the post closing trial balance sheet.

Only permanent accounts that would go on the balance sheet

T/F: Each account in the general ledger is numbered for easier identification

T

T/F: The general ledger is sometimes referred to as simply the ledger

T

incurred adv expense on account

adv expense -A/P

Morale Beaver company buys a $12,000 van on credit. This transaction will affect the...

balance sheet only

received cash for future services

cash -UR

received cash on account

cash -a/r

Internal users of accounting data include:

ceo ; supervisors; company officers

What are the three parts of the accounting process?

communicating, identifying, and recording

company borrowed money by signing a percent one year not

interest exp -interest payable

Monetary unit assumption

requires that only transaction data capable of being expressed in terms of money be included in the accounting records of the economic entity

paid salaries to employees

salaries and wages expense -cash