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Match the following definitions and terms:

Premises
A column in journals where individual account numbers are entered when entries are posted to ledger accounts.
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.
The most flexible type of journal, it can be used to record any kind of transaction.
A journal entry that affects at least three accounts.
A list of all accounts used by a company and the identification number assigned to each account.
A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts.
The process of transferring journal entry information to the ledger.
A written promise from a customer to pay a definite sum of money on a specified future date.
A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.
Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future.
Responses
Unearned revenues
Posting
Account
Posting reference column
Compound journal entry
General journal
Trial Balance
Note receivable
Chart of accounts
T-account

Correct Answer

A column in journals where individual account numbers are entered when entries are posted to ledger accounts.
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense item.
The most flexible type of journal, it can be used to record any kind of transaction.
A journal entry that affects at least three accounts.
A list of all accounts used by a company and the identification number assigned to each account.
A simple form used as a helpful tool in understanding the effect of transactions and events on specific accounts.
The process of transferring journal entry information to the ledger.
A written promise from a customer to pay a definite sum of money on a specified future date.
A list of accounts and their balances at a point in time; the total debit balances should equal the total credit balances.
Liabilities created when customers pay in advance for products or services; satisfied by delivering the products or services in the future.

The dividends account normally has a credit balance since it is an equity account.

A) True
B) False

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The journal is known as the book of final entry because financial statements are prepared from it.

A) True
B) False

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Which of the following is the appropriate journal entry if a company performs a service and is paid immediately?


A) Debit to Cash,debit to Service Revenue.
B) Debit to Cash,credit to Service Revenue.
C) Debit to Accounts Receivable,credit to Cash.
D) Debit to Service Revenue,credit to Accounts Receivable.
E) Debit to Accounts Receivable,credit to Service Revenue.

F) All of the above
G) A) and B)

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The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance. -Calculate the debt ratio. -Calculate the debt ratio.

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$13,400/$1...

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King Company pays an assistant $900 who worked during the month.How would King record this payment?


A) Debit Salaries Expense for $900 and credit Accounts Payable for $900.
B) Debit Salaries Expense for $900 and credit Cash for $900.
C) Debit Accounts Payable for $900 and credit Salaries Expense for $900.
D) Debit Cash for $900 and credit Salaries Expense for $900.
E) Debit Salaries Expense for $900 and credit Common Stock for $900.

F) All of the above
G) D) and E)

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The three general categories of accounts in a general ledger are __________________,_________________ and __________________________.

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assets,lia...

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A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.

A) True
B) False

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Increases in liability accounts are recorded as debits.

A) True
B) False

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The Fireside Country Inn is a very popular destination for tourists.The Inn requires guests to make reservations at least two months in advance of their stay.A 20 percent down payment is required at the time the reservation is made.When should this inn recognize room rental revenue?


A) On the date the reservation is received.
B) On the date the money for the reservation is received.
C) On the date the guests stay in the inn.
D) On the date the guests pay the remaining 80 percent due.
E) Once all cash has been received.

F) C) and E)
G) A) and E)

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Which of the following list of events properly reflects the early steps taken in the accounting process?


A) Record relevant transactions,post journal information to ledger accounts,analyze each transaction,and prepare and analyze the trial balance.
B) Post journal information to ledger accounts,analyze each transaction,post journal information to ledger accounts,and prepare and analyze the trial balance.
C) Prepare and analyze the trial balance,analyze each transaction,post journal information to ledger accounts,record relevant transactions.
D) Analyze each transaction,post journal information to ledger accounts,record relevant transactions,and prepare and analyze the trial balance.
E) Analyze each transaction,record relevant transactions,post journal information to ledger accounts,and prepare and analyze the trial balance.

F) C) and E)
G) All of the above

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Which of the following accounts is a balance sheet account?


A) Wages Payable
B) Operating Activities
C) Revenues
D) Dividends
E) Expenses

F) B) and D)
G) D) and E)

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A debit is used to record a(n) :


A) Decrease in an asset account.
B) Decrease in an expense account.
C) Increase in a revenue account.
D) Increase in the balance of common stock.
E) Decrease in the balance of retained earnings.

F) A) and C)
G) B) and C)

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A ledger is:


A) A record containing all accounts (with amounts) for a business.
B) A journal in which transactions are first recorded.
C) A collection of documents that describe transactions and events during the accounting process.
D) A list of all accounts with their debit balances at a point in time.
E) A list of all accounts a company uses and includes an identification number assigned to each account.

F) A) and B)
G) B) and E)

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Another name for the balance sheet is the statement of financial position.

A) True
B) False

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The right side of a T-account is a(n) :


A) Debit
B) Increase
C) Credit
D) Decrease
E) Account balance

F) A) and E)
G) B) and D)

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Rocky Industries received its telephone bill in the amount of $300 and immediately paid it.Rocky's journal entry to record this transaction will include a


A) Debit to Telephone Expense for $300.
B) Credit to Accounts Payable for $300.
C) Debit to Cash for $300.
D) Credit to Telephone Expense for $300.
E) Debit to Accounts Payable for $300.

F) All of the above
G) A) and C)

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On February 5,Textron Stores purchased a van that had a cost of $35,000.The firm made a down payment of $5,000 cash and signed a long-term note payable for the balance.Show the general journal entry to record this transaction.

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blured image_TB6947_00...

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On September 30,Forester Inc.receives its electric bill for the month of September in the amount of $300.The accountant sets the bill aside since it is not due until October 25.How would Forester record this transaction?


A) Debit Utilities Expense for $300 and credit Cash for $300.
B) Debit Utilities Expense for $300 and credit Accounts Payable for $300.
C) Debit Accounts Payable for $300 and Debit Utilities Expense for $300.
D) Debit Accounts Payable for $300 and credit Cash for $300.
E) Debit Cash for $300 and credit Utility Expense for $300.

F) None of the above
G) All of the above

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A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts. A company sends a $1,500 bill to a customer for delivery services rendered.Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.

Correct Answer

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blured image_TB6947_00...

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