Acct 3

Which of the following is NOT a financing activity? purchasing equipment paying dividends borrowing money issuing shares of stock

purchasing equipment

What would cause the debit balance to be higher than the credit balance on the trial balance? When a profit is made. If assets are more than liabilities. A loss is incurred. An error has been made.

An error has been made.

Mallard Company's total debit column is $27,000 on its trial balance. The remainder of the trial balance shows Accounts Payable of $3,000, Service Revenue of $20,000, and Notes Payable is blank. What is the balance for the Notes Payable account if no errors have occurred in the trial balance? $4,000 $17,000 $23,000 $27,000

$4,000 (Assuming that there are no errors, the total debit column should equal the total credit column. Total debits = 27,000. Accounts Payable and Service Revenue are normally credit balances, therefore, total credits before Notes Payable equals 23,000. 27,000 - 23,000 = 4,000 (Notes Payable))

At the beginning of the day the balance in the Cash account was $4,750. The ledger entries that day were a debit of $1,250 and a credit of $700. What would be the balance at the end of the day? $4,200 $6,000 $5,300 $6,700

$5,300 (The normal balance is a debit. Debits increase Cash and credits decrease Cash. Therefore, the new balance is $4,750 + $1,250 - $700 = $5,300.)

Which of the following statements is true? A debit to an asset account always indicates an error. A debit to an asset account always indicates an increase in the asset. A debit to an asset account always indicates a decrease in the asset. A debit to an asset account always indicates a credit was made to a liability account.

A debit to an asset account always indicates an increase in the asset.

What will happen if expenses are paid in cash? Stockholders' equity will increase. Liabilities will decrease. Assets will decrease. Assets will increase.

Assets will decrease.

Which of the following statements about credits is true? Credits decrease assets and increase liabilities. Credits decrease both assets and liabilities. Credits increase assets and decrease liabilities. Credits increase both assets and liabilities.

Credits decrease assets and increase liabilities.

________ that require recording in the financial statements are called accounting transactions. Explanations Economic events Tax hikes Regulations

Economic events

On May 10, Cardoza Construction purchased equipment of $500 on account. The entry to record the purchase will include a debit to ________ and a credit to Equipment; Cash. Equipment; Accounts Payable. Equipment; Accounts Receivable. Accounts Receivable; Equipment.

Equipment; Accounts Payable.

How would the Salaries and Wages Payable account compare with the Salaries and Wages Expense account in terms of classification in the ledger? Both would be found in the liabilities section. Both would be found in the stockholders' equity section. Salaries and Wages Payable would be found in the liabilities section while Salaries and Wages Expense would be found in the stockholders'; equity section. Salaries and Wages Payable would be found in the stockholders' equity section while Salaries and Wages Expense would be found in the liabilities section.

Salaries and Wages Payable would be found in the liabilities section while Salaries and Wages Expense would be found in the stockholders'; equity section.

Which of the following statements is true? Source documents do not provide legal evidence of transactions. Source documents can provide evidence that a transaction has occurred. Source documents are not used when recording transactions. Source documents are used to transfer information to the designated accounts in the ledger.

Source documents can provide evidence that a transaction has occurred.

Which of the following statements is accurate with regard to a trial balance? The equality of the two columns in a trial balance does not need to be verified. Credit balances are listed in the left column of a trial balance, while debit balances are listed in the right column. If the two columns in a company's trial balance agree, then the company's ledger must be correct. The accounts on a trial balance are listed in the order in which they appear in the ledger.

The accounts on a trial balance are listed in the order in which they appear in the ledger.

What effect may result if specific account titles are not used in journalizing? The journal entry will not balance. The general ledger will not balance. The financial statements may not be accurate. The contents of the account will differ from the name of the account.

The financial statements may not be accurate.

Which of the following is included in the journal entry for equipment purchased for $20,000 by paying $5,000 cash and signing a note for the remainder? Select answer from the options below debit to Notes Payable credit to Cash credit to Equipment credit to Notes Receivable

credit to Cash

A company borrows $10,000 in the form of a note. The ledger will show a $10,000 credit in the Cash account. debit in the Notes Payable account. credit in the Notes Receivable account. debit in the Cash account.

debit in the Cash account.

How is the Unearned Service Revenue account classified? expense asset revenue liability

liability

Within the past two weeks, Fanny's Flowers has completed each of the activities listed below. Of these activities, which should be recorded in the company's accounting records? purchased a new walk-in cooler fired one full-time employee hired two part-time employe sentered into contract negotiations with a new floral wholesaler

purchased a new walk-in cooler

Which of the following is used as evidence to determine a transaction's effects on specific accounts? journal entries ledger entries financial documents source documents

source documents

In the ledger, Accounts Receivable shows a debit balance of $12,500, indicating that $12,500 in services are owed to customers. receipt of $12,500 from customers. sales for the period totaled $12,500. that customers owe $12,500 to the company.

that customers owe $12,500 to the company.

When an accountant examines a source document as part of the recording process, what is the desired outcome? the verification of evidence of the accounts the identification of the respective business documents the transfer of the information to the ledger accounts the determination of the effects on the accounts

the determination of the effects on the accounts

Which of the following accounts would appear nearest to the top of a company's trial balance? Accounts Payable Common Stock Supplies Salaries and Wages Expense

Supplies

On January 14, Welsford Agency purchased supplies of $500 on account. The entry to record the purchase will include a debit to Accounts Receivable and a credit to Supplies. Supplies and a credit to Cash. Supplies Expense and a credit to Accounts Receivable. Supplies and a credit to Accounts Payable.

Supplies and a credit to Accounts Payable.

Joe Smith examined the sales slip related to a customer sale. Which part of the recording process is this action? Entering the transaction in the journal. The transfer of the transaction to the appropriate accounts in the ledger. The preparation of the financial statements. The analysis of each transaction.

The analysis of each transaction.

What would it mean if there was a new ledger credit entry of $5,000 to the Notes Payable account? The company has $5,000 in unearned income (a liability account). The company has borrowed $5,000 in the form of a note. The company has paid $5,000 towards an existing note. The company has loaned $5,000 in the form of a note.

The company has borrowed $5,000 in the form of a note.

Alex's auto factory has decided to buy a new assembly line for their plant. The equipment costs $80,000, and in order to finance it, the company must borrow $80,000. Which of the following would be a correct description of the posting entry for this transaction? The credit posting to Notes Payable would increase the account by $80,000. The debit posting to Notes Payable would increase the account by $80,000. The debit posting to Notes Payable would decrease the account by $80,000. The credit posting to Notes Payable would decrease the account by $80,000.

The credit posting to Notes Payable would increase the account by $80,000.

Which of the following describes the standard form of a journal entry? The debit account is entered first at the extreme left margin. The credit account is entered first at the extreme left margin. The credit account is entered first and indented. The debit account is entered first and indented.

The debit account is entered first at the extreme left margin.

Cash was used to pay $2,500 of accounts payable. The prior balance in Accounts Payable was $5,500. Which of the following would be included in the ledger entry for Accounts Payable? a balance of $2,500 a debit of $2,500 a credit of $2,500 a balance of $8,000

a debit of $2,500

On June 1, 2022, Harry's Dog Grooming received $800 cash for services rendered. The entry to record this transaction will include a credit to Accounts Receivable. a credit to Accounts Payable. a debit to Service Revenue. a debit to Cash.

a debit to Cash.

European accounting systems use the same double-entry system used in the United States. do not use an equity section as is used in the United States. use a different basic accounting system than used in the United States. always measure amounts in the same way as in the United States.

use the same double-entry system used in the United States.

In which of the following cases will a trial balance not balance? when a $300 payment on accounts payable is debited to Accounts Payable for $30 and credited to Cash for $30 when a $50 cash dividend is debited to Dividends for $500 and credited to Cash for $50 when a transaction is not posted at all when a correct journal entry is posted twice

when a $50 cash dividend is debited to Dividends for $500 and credited to Cash for $50

What would be the balance in the Accounts Receivable ledger account, if the beginning balance was $6,000, after the following entries: debit for $12,000, credit for $9,000 and credit for $1,000? $4,000 $8,000 $2,000 $10,000

$8,000 (The normal balance for Accounts Receivable is a debit. Debits increase Accounts Receivable, and credits decrease Accounts Receivable. Therefore, the new balance of Accounts Receivable is $6,000 + $12,000 - $9,000 - $1,000 = $8,000.)

Paulson Oil account balances at January 31st include: Cash $70,000, Accounts Receivable $100,000, Common Stock $120,000 and Accounts Payable $50,000. During the month of February, the company collected $25,000 of its account receivable and paid $10,000 of its accounts payable. What is Paulson's cash balance on their February 28th trial balance? $65,000 $85,000.00 $95,000.00 $60,000.00

$85,000.00 (Collecting accounts receivable will increase the January 31st cash balance by $25,000 and paying accounts payable will decrease the January 31st cash balance by $10,000. Therefore the cash balance as of February 28th for Paulson Oil is $85,000 ($70,000 beginning balance + $25,000 collection - $10,000 payment).

From among the following errors, each considered individually, choose the one that would cause the trial balance to be out of balance. Cash of $530 received from a customer on account was posted as a debit of $350 to Cash and as a credit of $350 to Accounts Payable. A transaction was not posted. A payment to a creditor was posted as a $148 debit to Accounts Payable and a debit of $148 to Cash. A payment of $59 for supplies was posted as a debit of $95 to Supplies and a credit of $95 to Cash.

A payment to a creditor was posted as a $148 debit to Accounts Payable and a debit of $148 to Cash. (In every recorded transaction, total debits must equal total credits or the trial balance will be out of balance. If an error in made and both sides of the transaction are recorded as debits, this causes the trial balance to be out of balance.)

In which of the following cases will a trial balance have an error and yet still balance? A transaction is not journalized. A debit amount is recorded in the credit column. A trial balance only balances when no errors have been made. If a number was transposed when transcribing it from the ledger.

A transaction is not journalized.

If customers owe a company $10,000, which account in the ledger would reflect this? Accounts Receivable would have a debit of $10,000. Cash would have a debit of $10,000. Accounts Payable would have a debit of $10,000. Notes Payable would have a credit of $10,000.

Accounts Receivable would have a debit of $10,000.

For September 30th, Cathy's Catering's trial balance has a debit column totaling $110. The credit column totals $128, which of the following would explain this difference? Cash balance of $51 listed in the trial balance $15. Accounts receivable balance of $75 listed in the trial balance as $57. Notes payable balance of $25 listed in the trial balance $52. Accounts payable balance of $18 listed in the trial balance as $81.

Accounts receivable balance of $75 listed in the trial balance as $57. (The difference between the total debit and total credit columns is $18. If the correct accounts receivable balance is $75 and it was listed in the trial balance as $57, this would cause the total debit column to be understated by $18. Therefore it is the Accounts Receivable balance that caused this difference.)

What is the difference between an error and an irregularity? An error is an unintentional mistake; an irregularity is an unintentional misstatement. An error is an unintentional mistake; an irregularity is an intentional misstatement. An error is an intentional misstatement; an irregularity is an intentional mistake. An error is an intentional mistake; an irregularity is an unintentional mistake.

An error is an unintentional mistake; an irregularity is an intentional misstatement.

Some of the balances on Carla's Cookies June 30th trial balance include Cash $100,000, Accounts Receivable $50,000, Equipment $25,000, and Accounts Payable $75,000. During the month of July, the company used cash to purchase $8,000 of equipment. How will this transaction affect the equipment account balance on the July 31st trial balance? A decrease of $8,000. A decrease of $4,000. An increase of $8,000. An increase of $4,000.

An increase of $8,000.

Which of the following is an accurate comparison between the United States and European accounting systems? Both the U.S. and Europe use the double-entry bookkeeping system. Both the U.S. and Europe use the single-entry bookkeeping system. The U.S. uses a single-entry bookkeeping system and Europe uses a double-entry bookkeeping system. The U.S. uses a double-entry bookkeeping system and Europe uses a single-entry bookkeeping system.

Both the U.S. and Europe use the double-entry bookkeeping system.

Cash and Equipment are asset accounts. If equipment is purchased using cash, then both Cash and Equipment are debited, since they are both assets. both Cash and Equipment are credited. Cash is credited and Equipment is debited. Cash is debited and Equipment is credited.

Cash is credited and Equipment is debited.

You are working on an account that has more total credits than total debits. Which of the following accounts could you be working on? Equipment. Cash. Common Stock. Rent Expense.

Common Stock.

On July 1, Cooper Corporation received $20,000 from Smith Industries in exchange for services performed. What accounting entries should Cooper make to record this event, and why? Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's liabilities will increase by the same amount as its assets. Cooper should record a $20,000 increase in unearned service revenue along with a $20,000 increase in cash, because this way the firm's liabilities will increase by the same amount as its assets. Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets. Cooper should record a $20,000 increase in unearned service revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets.

Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets.

Which of the following problems may cause financial statements to be inaccurate? Failing to follow a specific budget. Failing to use specific account titles. Paying more dividends than net income received. Overspending the Cash account.

Failing to use specific account titles.

You are the accountant responsible for creating financial documents and recording transactions. In which order will you perform the following actions related to these tasks? I. create financial statements II. record transactions in the ledger III. examine business documents IV. record transactions in the journal III, IV, II, I IV, II, I, III III, II, I, IV III, II, IV, I.

III, IV, II, I (The first step is to analyze the source documents to determine which accounts the transaction affect. The second step is to record the transactions in the journal. The third step is to record the journal entries to the ledger accounts. Finally, once all information is in the ledger, the financial statements can be prepared.)

On December 30, Mega Industries pays employee salaries of $50,000 in cash. When posting the journal entries related to this transaction, Mega's accounting staff credits Cash for $50,000 and credits Accounts Payable for $50,000. Which of the following statements best describes the results of this posting? In Mega's general ledger, the ending balance for the Cash account will be too low, while the ending balance for the Accounts Payable account will be too high. In Mega's general ledger, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low. In Mega's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Accounts Payable account will be too high and the ending balance for the Salaries Expense account will be too low. In Mega's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Accounts Payable account will be too low and the ending balance for the Salaries Expense account will be too high.

In Mega's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Accounts Payable account will be too high and the ending balance for the Salaries Expense account will be too lowI

On September 1, Pike Products purchases $5,000 of supplies from Indigo Industries, with the understanding that Pike will provide payment within 60 days. When posting the journal entries related to this transaction, Pike's accounting staff debits Supplies for $5,000 and debits Cash for $5,000. Which of the following statements best describes the results of this posting? In Pike's general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low. In Pike's general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too low, while the ending balance for the Accounts Payable account will be too high. In Pike's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Supplies account will be too low, while the ending balance for the Accounts Payable account will be too high. In Pike's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Supplies account will be too high, while the ending balance for the Accounts Payable account will be too low.

In Pike's general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low.

What is the purpose of the 'explanation' of each transaction that appears in a journal entry? It provides insight into the purpose of the activity recorded. It separates individual journal entries. It verifies that the total debit amount is equal to the total credit amount of each entry. It ensures that the correct account names are used in each entry.

It provides insight into the purpose of the activity recorded.

Suppose a firm has used $15,000 of its cash to pay rent this month. What effect would this have on the Cash and Rent Expense accounts? It would increase the Cash account as a debit and increase the Rent Expense account as a credit. It would decrease the Cash account as a credit and increase the Rent Expense account as a debit. It would decrease the Cash account as a debit and decrease the Rent Expense account as a credit. It would increase the Cash account as a credit and increase the Rent Expense account as a debit.

It would decrease the Cash account as a credit and increase the Rent Expense account as a debit.

The classification and normal balance of the Accounts Payable account is Select answer from the options below Revenues, with a credit balance. Asset, with a debit balance. Expense, with a debit balance. Liability, with a credit balance.

Liability, with a credit balance.

On February 2, Miles Inc. pays $800 to purchase a one-year insurance policy that will expire next year on January 31. Miles indicates this transaction in its books by recording an $800 reduction in cash and an $800 increase in expenses. Did Miles make the proper accounting entries? Why or why not? No, Miles did not make the proper accounting entries. Prepaid insurance is a liability, not an expense. Thus, the firm should have offset the $800 decrease in cash (an asset account) with an $800 decrease in prepaid insurance (a liability account). No, Miles did not make the proper accounting entries. Prepaid insurance is an asset, not an expense. Thus, the firm should have offset the $800 decrease in cash (an asset account) with an $800 increase in prepaid insurance (also an asset account). Yes, Miles made the proper accounting entries. In order to keep the accounting equation in balance, the firm had to increase its expenses and thus decrease its stockholders' equity by the same amount as it decreased its assets. No, Miles did not make the proper accounting entries. Prepaid insurance is a liability, not an expense. Thus, the firm should have offset the $800 decrease in cash (an asset account) with an $800 increase in prepaid insurance (a liability account).

No, Miles did not make the proper accounting entries. Prepaid insurance is an asset, not an expense. Thus, the firm should have offset the $800 decrease in cash (an asset account) with an $800 increase in prepaid insurance (also an asset account). (Prepaid insurance is an asset, not a liability or expense. Thus, this transaction should not affect either the liabilities or stockholders' equity portion of the balance sheet. Instead, only the assets portion should be affected. Specifically, the $800 reduction in cash should be offset by an $800 increase in prepaid insurance.)

Karen Pollard owns an ice cream shop. She is in the middle of her accounting period, and she wants to know the amount of accounts receivable owed to the company. Should she look at the trial balance first? Why or why not? No; the trial balance is only up-to-date at the end of the accounting period. No; the trial balance only shows credit accounts, not debit accounts. No; the trial balance only gives an estimate of the amount in each account, not a specific value. Yes; the trial balance is kept up-to-date after every transaction.

No; the trial balance is only up-to-date at the end of the accounting period.

Which of the following would cause the Potter company's May 31st trial balance to not balance? The cash account was debited instead of the utilities expense account. A transaction was not journalized. A journal entry was not posted. Only the credit portion of a journal was posted.

Only the credit portion of a journal was posted.

Which of the following statements about posting is true? Posting should be performed in account number order. Posting involves transferring all debits and credits on a journal page to the trial balance. Posting is accomplished by examining ledger accounts and seeing which ones need updating. Posting accumulates the effects of journalized transactions in the individual accounts.

Posting accumulates the effects of journalized transactions in the individual accounts.

Which statement is true concerning any account? The right side is the credit, and the left side is the debit. The identification of the debit or credit side as left or right depends upon the type of account. The left side is the credit, and the right side is the debit. The debit side indicates an increase, and the credit side indicates a decrease.

The right side is the credit, and the left side is the debit.

Geyer Company has the following account balances: Accounts Receivable: $40, Accounts Payable: $45, Cash: $70, and Notes Payable: $65. If the Notes Payable balance is listed as $56 in the trial balance, what impact will this have on the accounts? There will be no impact on the accounts. The total debit balance will be $9 less than the total credit balance. The total credit balance will be $9 more than the total debit balance. The total credit balance will be $9 less than the total debit balance.

The total credit balance will be $9 less than the total debit balance.

During JCL's month end close, only the debit side of a journal entry was posted. How will this affect JCL's trial balance? This will not affect the trial balance. The total debit column will not equal the total credit column. There will be more credit accounts than debit accounts. Liabilities will be greater than assets.

The total debit column will not equal the total credit column.

Renaud Construction's trial balance on November 30th has the following balances. What is the total of Renaud's debit column on November 30th? Accounts payable Land Notes payable equipment cash accounts recievable buildings common stock retained earnings

The total debits for Renaud Construction equal the sum of Cash, Accounts Receivable, Land, Equipment, and Buildings: $80,000 + $100,000 + $300,000 + $160,000 + $240,000 = $880,000.

What happens when a portion of an account payable is paid? Select answer from the options below There is no effect on stockholders' equity. Net income decreases. Liabilities increase. There is no effect on total assets.

There is no effect on stockholders' equity.

During October, Blue Sky Inc. correctly enters a $10,000 credit to its Revenues account. What conclusions can be made based on this accounting entry? This entry indicates that Blue Sky lost $10,000 in revenue in October, which likely means that the firm's net income, ending retained earnings, and stockholders' equity all decreased. This entry indicates that Blue Sky lost $10,000 in revenue in October, which likely means that the firm's net income and ending retained earnings decreased while its stockholders' equity increased. This entry indicates that Blue Sky recognized $10,000 in revenue in October, which likely means that the firm's net income, ending retained earnings, and stockholders' equity all increased. This entry indicates that Blue Sky recognized $10,000 in revenue in October, which likely means that the firm's net income and ending retained earnings increased while its stockholders' equity decreased.

This entry indicates that Blue Sky recognized $10,000 in revenue in October, which likely means that the firm's net income, ending retained earnings, and stockholders' equity all increased.

Fill in the blanks in the following sentence. An error is _________ while an irregularity is an intentional misstatement; an intentional mistake. an unintentional mistake; an intentional misstatement. an unintentional mistake in calculation; an unintentional mistake in entering data. a mistake with minor impact; a mistake with major impact.

an unintentional mistake; an intentional misstatement.

With which type of account does the chart of accounts typically begin? expense accounts revenue accounts liability accounts asset accounts

asset accounts

Beacon Books issues common stock for $500,000 and uses $100,000 of the cash for building improvements. As a result, assets will be increased by $500,000. assets will be increased by $400,000. assets will be unchanged. stockholders' equity will be reduced by $500,000.

assets will be increased by $500,000.

What is the usual order of accounts in the general ledger? assets, liabilities, revenues, and expenses assets, liabilities, expenses, and revenues common stock, retained earnings, assets, liabilities, dividends, expenses, and revenues liabilities, assets, revenues, expenses, and dividends

assets, liabilities, revenues, and expenses

When is a trial balance customarily prepared? at the end of each day after each journal entry is posted only at the inception of the business at the end of an accounting period

at the end of an accounting period

The first step in transferring journal entry amounts to ledger accounts involves writing in the journal the account number to which the debit amount was posted. entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal. entering in the appropriate ledger account the date and debit amount shown in the journal. writing in the journal the account number to which the credit amount was posted.

entering in the appropriate ledger account the date and debit amount shown in the journal.

The first step in transferring journal entry amounts to ledger accounts involves writing in the journal the account number to which the credit amount was posted. entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal. writing in the journal the account number to which the debit amount was posted. entering in the appropriate ledger account the date and debit amount shown in the journal.

entering in the appropriate ledger account the date and debit amount shown in the journal. (The procedure of transferring journal entry amounts to the ledger accounts is called posting. Posting involves first entering the date and debit amount shown in the journal into the appropriate columns of the debited account(s) in the ledger. The second step of posting involves entering the date and credit amount shown in the journal into the appropriate columns of the credit account(s) in the ledger.)

Which of the following is MOST likely prepared after using the trial balance? budget general ledger journal entries financial statements

financial statements (Financial statements are generally prepared using the trial balance. Journal entries are posted to the general ledger which is in turn used to prepare the trial balance.)

During posting, where is information transferred? from the source documents to the journal from the journal to ledger from the source documents to the ledger from the ledger to the journal

from the journal to ledger

During posting, where is information transferred? from the ledger to the journal from the source documents to the ledger from the source documents to the journal from the journal to ledger

from the journal to ledger (Posting is the process of transferring the journaled transactions into the specified accounts on the general ledger. Source documents were used prior to the posting step, as they were analyzed prior to journalizing the appropriate transactions.)

What is the entire group of accounts maintained by a company called? general journal general ledger chart of accounts trial balance

general ledger (Every company has a general ledger where the entire group of accounts is maintained. The general ledger contains all the asset, liability, stockholders' equity, revenue and expense accounts and their respective balances and changes to those balances.)

How must each transaction be recorded in the double-entry system? in a journal and in a ledger at the beginning and end of the month as a revenue first and then as an expense in at least two different accounts

in at least two different accounts

If the trial balance has total debits equal to total credits, then no irregularities occurred in the reporting process. it is possible there are errors in the trial balance. no errors occurred in the recording process. all journal entries must have been posted.

it is possible there are errors in the trial balance. (Even if total debits equal total credits, there is still the possibility for error in the trial balance. It is possible the trial balance may balance even when any of the following situations occur: 1. a transaction is not journalized; 2. a journal entry is not posted; 3. a journal entry is mistakenly posted twice; 4. incorrect accounts are used in either journaling or in posting; or 5. offsetting errors are made in recording the amount of a transaction.)

Receipts of cash in advance from customers are not treated as revenue at the time of receipt because the amount of revenue cannot be adequately determined until the company completes the work. not treated as revenue at the time of receipt because revenue cannot be recognized until the work is performed. treated as revenue at the time of receipt because the company has access to the cash. treated as revenue at the time of receipt because the intent of the company is to perform the work and the customer is confident that the services will be completed.

not treated as revenue at the time of receipt because revenue cannot be recognized until the work is performed.

A left (debit) side, a right (credit) side, and a title make up an account in its ________ form. traditional but outdated simplest least usual most complex

simplest

To find the balance in an account, one should look in the chart of accounts. the ledger. the list of transactions. the journal.

the ledger. (The ledger is a list of all specified accounts and, after posting of the journaled transactions has occurred, shows the current balance in each of the accounts.)

What does a trial balance prove? that all transactions have been recorded correctly the mathematical equality of debits and credits after the posting process that all transactions have been posted that the ledger is posted correctly

the mathematical equality of debits and credits after the posting process

What is the purpose of the ledger? to make sure that all assets, liabilities, etc., have normal balances at all times to keep in one place all information about changes in specific account balances to record chronologically the day's transactions to keep a record of documentation to support each transaction

to keep in one place all information about changes in specific account balances

What is the primary purpose of the trial balance? to prove the equality of the debit and credit amounts after posting to facilitate the transfer of journal entries to the ledger accounts to disclose the complete effect of a transaction in one place to ensure a journal entry is not posted twice

to prove the equality of the debit and credit amounts after posting

Identifying the type of account involved and whether to make a debit or a credit to the account is the purpose of using transactions to create financial documents. posting transactions in the ledger. journalizing transactions. transaction analysis.

transaction analysis.

What is the term for an accounting record that includes a list of accounts and their balances at a given time? general ledger trial balance general journal chart of accounts

trial balance