self test accounting 3

an account will have a debit balance if the

total of the debit amounts exceeds the credits

posting

transfers journal entries to ledger accounts

The entire group of accounts maintained by a company is the ledger

true

A trial balance would only help in detecting which one of the following errors

a transposition error when transferring the debit side of the journal entry to the ledger

posting

accumulates the effects of journalized transactions in the individual accounts

An account is a part of the financial information system and described by the following

an account is a source document

Which of the following statements about an accounts is true?

an account is an individual accounting record of increases and decreases to a specific asset, liability, and owner's equity items

the first step in the recording process is to

analyze each transaction for its effect on the accounts

A complete journal entry includes all of the following except

the balance of the accounts to be debited and credited

Before posting a payment of $5,000, the Accounts Payable of Senator Company has a normal balance of $16,000. The balance after posting this transaction was

$11,000

The trial balance of Clooney Company had accounts with the following normal balances: Cash $5,000, Revenue $85,000, Salaries and Wages Payable $4,000, Salaries and Wages Expense $40,000, Rent Expense $10,000, Common Stock $42,000; Dividends $15,000; Equipment $61,000. In preparing a trial balance, the total in the debit column is

$131,000

The trial balance of Kelso Company had accounts with the following normal balances: Cash, $8,000; Accounts Receivable, $6,000; Equipment, $10,000; Accounts Payable, $9,000; Common Stock, $15,000; Dividends, $500; Service Revenue, $7,000; Rent Expense, $1,000; Salaries and Wages Expense, $3,000; and Advertising Expense, $2,500. In preparing the trial balance, the total in the debit column is

$31,000

The expanded accounting equation is

A= L + CS- D + R-E

The debit and the credit columns of a trial balance each total $80,000. Which error may still exist?

a cash payment on account of $450 is incorrectly recorded as a cash payment on account of $450

The purchase of supplies on account should result in

a debit to supplies and a credit to accounts receivable

companies initially record transactions in the general journal in

chronological order

The ledger accounts should be arranged in

financial statement order

dollar signs are typically used only in the

financial statements and trial balance

debits

increase assets and decrease liabilities

A credit to a liability account indicates an

increase in the liability

credits

increase liabilities and decrease assets

a credit to a revenue account

indicates an increase in the revenues earned

a ledger

is a collection of the entire group of accounts maintained by a company

A trial balance

is al ist of accounts with their balances at a given time

entering transaction data in the journal is known as

journalizing

Unearned revenue account is a

liability

The chart of accounts is

listing of the accounts and the account numbers that identify their location in the ledger

On June 1, Diane Leno buys a copier machine for her business and finances this purchase with cash and a note payable. When journalizing this transaction, she will

prepare a compound entry

What is not a part of the recording process

prepare a trial balance

Companies prepare a trial balance at the end of an accounting period and it is useful in ...

preparing financial statements

The primary purpose of a trial balance is to

prove that the debits equal the credits after posting