A list of all the accounts from the ledger with their ending balances is called a __________.
A. normal balance
B. trial balance
C. chart of accounts
D. footing
A credit to a liability account was posted to an asset account. This error would cause __________.
A. liabilities to be overstated
B. liabilities to be understated
C. revenues to be overstated
D. revenues to be understated
The business incurred an expense and paid it immediately. To record this __________.
A. an expense is debited and a liability is credited
B. an expense is debited and an asset is credited
C. an expense is debited and Capital is credited
D. None of the above answers are correct.
The entry to record the payment of office salaries would be __________.
A. debit Cash; credit Accounts Receivable
B. debit Cash; credit Salaries Expense
C. debit Salaries Expense; credit Accounts Payable
D. debit Salaries Expense; credit Cash
Business transactions are first recorded in the __________.
A. ledger
B. journal
C. trial balance
D. balance sheet
A credit to a liability account was posted to an owner's equity account. This would cause __________.
A. assets to be overstated
B. liabilities to be understated
C. owner's equity to be understated
D. net income to be overstated
A journal entry affecting three or more accounts is called a __________.
A. multi-level entry
B. multi-step entry
C. compound entry
D. simple entry
A debit to the capital account was posted to an expense account. This would cause __________.
A. assets to be overstated
B. liabilities to be understated
C. capital to be overstated
D. expense to be understated
Posting is performed by transferring information from the journal to the __________.
A. ledger
B. trial balance
C. balance sheet
D. income statement
"PR" in the general journal and general ledger stands for __________.
A. per reviewer
B. posting reference
C. prior receipt
D. None of the above answers are correct.
The process that begins with recording business transactions and includes the completion of the financial statements is the __________.
A. calendar year
B. natural business year
C. fiscal year
D. accounting cycle
A debit to an expense account was posted to an asset account. This would cause __________.
A. assets to be understated
B. liabilities to be understated
C. capital to be understated
D. expenses to be understated
A debit to a liability account was posted to an expense account. This would cause __________.
A. assets to be overstated
B. liabilities to be understated
C. owner's equity to be overstated
D. expenses to be overstated
A debit to a revenue account was posted to an expense account. This would cause __________.
A. expenses to be overstated
B. revenue to be understated
C. expenses to be understated
D. capital to be overstated
The journal entry to record a withdrawal by the owner would most commonly include __________.
A. a debit to Wage Expense and a credit to Cash
B. a debit to Capital and a credit to Cash
C. a debit to Withdrawals and a credit to Cash
D. a debit to Cash and a credit to Wage Expense
The posting reference column on the general journal __________.
A. shows which transactions have been posted to the ledger
B. displays to which accounts the transactions have been posted
C. allows us to cross reference to the general ledger
D. All of the above answers are correct.
Renzi's Volleyball Gym purchased equipment for $1,200. It made a down payment of $600 with the remainder on account. The journal entry to record this transaction is __________.
A.
Cash 600
Accounts Receivable
600
B.
Accounts Payable 600
Cash 600
Equipment
1,200
C.
Supplies 1,200
Cash
600
Accounts Payable
600
D.
Equipment 1,200
Accounts Payable
600
Cash
600
Revenue is traditionally recognized in the accounting records when __________.
A. cash is received
B. services are rendered
C. it is incurred
D. None of the above answers are
During the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be __________.
A. Cash, debit $11,000; Katelyn's Capital, credit $11,000
B. Accounts Payable, debit $11,000; Cash, credit $11,000
C. Cash, debit $11,000; Revenue, credit $11,000
D. Katelyn's Capital, debit $11,000; Cash, credit $11,000
A debit to the capital account was posted to a revenue account. This would cause __________.
A. assets to be understated
B. liabilities to be overstated
C. capital to be understated
D. revenue to be understated
The first step of the accounting cycle is __________.
A. recording journal entries
B. posting to the ledger
C. preparing a trial balance
D. analyzing business transactions
A credit to an asset account was posted to a revenue account. This would cause __________.
A. assets to be understated
B. liabilities to be understated
C. capital to be understated
D. revenue to be overstated
A debit to a liability account was posted to a revenue account. This would cause __________.
A. assets to be overstated
B. liabilities to be overstated
C. capital to be overstated
D. revenue to be overstated
