Chapter 2 – Analyzing Transactions – Flashcards
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A group of accounts for a business entity is called
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ledger
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The chart of accounts is
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a list of the accounts in the ledger.
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The left-hand side of the T account is called
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debit side
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The following is the accounts receivable T account on October 31, Accounts Receivable Oct. 1 20,000 (b) 23,000 (a) 18,000 What is the ending balance of this account on October 31?
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15000 debit
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When a transaction is journalized, which account is listed first?
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the account to be debited
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On March 13, Henson Company purchased supplies on account for $560. Which of the following is the correct journal entry for this transaction?
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c. Supplies 560 Accounts Payable 560
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Which of the following groups of accounts increase with debits?
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None of these choices are correct.
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The debits and credits for each journal entry are posted to the accounts
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in the order in which they occur in the journal.
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The process of posting is
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transferring the debits and credits from the journal to the ledger.
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Cash receipts are posted to the
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debit side of t account
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Claremore Company received $7,000 as payment from Tulsa Company for a sale made on account in the previous month. Which of the following is the journal entry the company should record?
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Cash 7,000 Accounts Receivable 7,000
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The trial balance will include
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the ending balance of each account.
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Which of the following is not an error that would cause the trial balance to become unequal?
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The debit part of an entry posted to the wrong account
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When preparing correcting entries
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a. the erroneous entry must be reversed. b. the erroneous entry must be combined with the correcting entry. C. None of these choices are correct. 100 d. the erroneous entry is never reversed.
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The following are the account balances for Facci Company on December 31. Assume all accounts have normal balances. If the company prepares a trial balance at this time, what will be the debit and credit totals?
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$37,370
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Using horizontal analysis, the increases and decreases are shown
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as amounts and percentages for each line item.
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Which of the following statements is not true of horizontal analysis?
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Each item on a financial statement is compared with a total amount from the same statement
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The following are line items from the horizontal analysis of an income statement:
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Wages expense
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Select one of the following accounts to complete the above journal entry.
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fees earned
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The unadjusted trial balance is prepared
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after the journal entries are posted.
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Horizontal analysis of a balance sheet
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shows changes in individual asset, liability, and equity items over time.
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Which of the following statements will not result in the trial balance being unequal?
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A debit of $400 was incorrectly posted to Supplies instead of Supplies Expense.
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the Recliner Company is wanting to verify that all of its accounts are in balance. Which of the following will be prepared for this purpose?
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Trial balance
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The owner, Marcus James, withdrew $3,000 from the business for personal use. Which of the following is the journal entry the company should record?
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Marcus James, Drawing 3,000 Cash 3,000
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Transferring the debits and credits from the journal entries to the corresponding accounts is called
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posting
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Which of the following groups of accounts increase with credits?
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Accounts Payable, Unearned Rent, Fees Earned
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The journal entry to pay creditors on account would include
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a debit to Accounts Payable.
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Using the following information, determine the balance of the cash account. The left side of the T account sums to $34,500 and the right side of the T account sums to $19,450.
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$15,050 .. subtract
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Which of the following statements is not true for T accounts?
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The excess of the credits of an asset account over the debits is the balance of the account.
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The right-hand side of the T account is called
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credit
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Horizontal analysis of an income statement
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compares the amount of each item on a current income statement with the same item on an earlier income statement.
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The owner, Alex Xu, invested an additional $45,000 of funds into the business. Which of the following is the journal entry the company should record?
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Cash 45,000 Alex Xu, Capital 45,000
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The journal serves as
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a record of initial entry of transactions into the accounting system.
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What is the ending balance of the following account on April 30?
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3500 credit
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The T account for Unearned Rent appeared as follows after posting from the journal:
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A "23" was entered in the Post. Ref. column of the journal.
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The following are line items from the horizontal analysis of an income statement:
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(200) and (25), respectively
