ACC 120 – Chpt 2 – Flashcards
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Which of the following is not true about the chart of accounts
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Numbers accounts in alphabetic order
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Double-entry accounting is an accounting system:
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That records the effects of transactions and other events in at least two accounts with equal debits and credits.
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A trial balance
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is done to make sure the ledger is in balance
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Which of the following is not found in the journal?
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The affect on net income of the transaction
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Paying a creditor on account will result in
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a credit to cash and a debit to accounts payable
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An account balance is:
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The difference between the total debits and total credits for an account including the beginning balance.
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A credit entry:
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Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts.
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The process of transferring journal entry information to the ledger is called
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posting
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A credit is used to record:
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All of the above:
A decrease in an expense account,
A decrease in an asset account,
An increase in an unearned revenue account,
An increase in a revenue account.
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Receiving cash from a customer on account will result in:
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a debit to cash and a credit to accounts receivable
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A simple account form widely used in accounting to illustrate how debits and credits work is called a:
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T-account
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Which of the following is a true statement regarding debits and credits?
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Assets and expenses are both increased with a debit.
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A debit is:
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The left-hand side of a T-account.
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Which of the following statements is incorrect?
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The normal balance of an expense account is a credit.
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If an entry debited supplies and credited accounts payable for the same amount, then which of the following occured?
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the company purchased supplies on account
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If a company received payment from a customer for services to be performed in future periods, the entry to be made would be:
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debit cash; credit unearned fees
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A ledger is:
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Is a collection of all accounts used in a company's information system.
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Of the following accounts, the one that normally has a credit balance is:
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Sales Salaries Payable.
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Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's ledger entry to record this transaction will include a
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Debit to Telephone Expense for $300.
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An entry to sell stock for cash will result in an entry to:
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debit cash; credit capital stock
