Chapter-4 - Some basic information about Chap 4 in ACCT1030 PDF

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Some basic information about Chap 4 in ACCT1030...

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Chapter 4 Which of following step is performed prior to preparing the trial balance in an accounting cycle: Post to ledger accounts What is the correct entry to record the prepayment of car insurance: Debit Prepaid Insurance and Credit Cash Posting to the general ledger means: To transfer journal data to the general ledger Which one of the following accounts is decreased by a credit entry: Cash The normal balance of property, plant and equipment in the general ledger is debit: TRUE A chart of accounts has a standard set of account numbers used by all companies: FALSE Increase in revenue are: Credits Which of the following provides a list of accounts used by a business: Chart of accounts When recording a journal entry, which of the following helps determine the account number and account name to be used: Chart of accounts Increase in assets are: Debits Goods were purchased on account last month. What is the correct entry to record the payment made this month for the purchase made last month: Debit accounts payable and credit cash As the manager of a travel company, one of your duties is to review journal entries. During of your review, you noticed that the bookkeeper entered a cash sale entry incorrectly. They debited cash for 500, and credited service revenue for 500. The cash sale was for 600: Debit service revenue and credit cash for 500 Which of the following is the first step of accounting cycle: Analyze the transaction The purchase of photocopy paper for 300 to be paid next month would be recorded as a: Debit to office supplies and credit to accounts payable When T-accounts with debits and credits are used, debits are recorded on the: Lef Choose the correct journal entry to record the sale of a machine (an asset no longer needed by the company, carried at its book value), for cash: Debit cash and credit machine What is the correct entry to record a cash sale: Debit cash and credit service revenue

A debit to entertainment expense and a credit to a liability account results from: Charging entertainment to a credit card A Trial balance is used to confirm that: Total debits equal total credits What is fourth step if the accounting cycle: A trial balance A debit to cash and a credit to interest earned is the entry to record: Interest received on your savings account Which of the following categories of account cannot be found in the general ledger: None of the choices The accounting equation is: Assets = Liabilities + Onwer’s Equity The normal balance of a revenue account in the general ledger is a debit: FALSE If you purchase a computer, which is payable in the next month, what is the correct journal entry to record the purchase: Debit computer, credit account payable Which of the following is not a source document: The verbal confirmation for a sales order Which one of the following account is increased by a debit entry: Maintenance expense You are owner of a business and go to the bank to arrange a loan. The manager agreed to provide the loan which you will receive next month. As of the current date you: Do nothing A debit to an expense account will: Decrease owner’s euiqty When paying cash for building maintenance, one part of the journal entry includes: Credit to cash Entries are recorded in the journal: Chronologically (by date) Earlier this month, you bought printer ink which was recorded as an asset computer instead of an expense in error. Which journal entry will correct this error: Debit Expense, Credit Computer The normal of an expense account in the general ledger is a debit: TRUE Decreases in liabilities are: Debits After a journal entry is recorded, it is: Posted to the general ledger

To entry to record the payment of bank loan principle and interest requires: A debit to interest expense, a debit to bank loan, and a credit to cash Increase in expenses are: Debits The normal balance of the accounts receivable account in the general ledger is a debit: TRUE The normal balance of a liability account in the general ledger is a debit: FALSE When the trial balance is in balance, it means that the financial statements are accurate: FALSE It is possible for two accounts to have the same chart of account number: FALSE The normal balance of the prepaid expense account in the general ledger is a credit: FALSE Which of the following step is performed repeatedly during an accounting period: Journalize the transaction You are the owner of a business and use the business’s cash to pay a personal loan and interest. Which of the following statements is correct: The Drawings account should be debited The document which recorded the activities and totals of each specific account is called a: General ledger...