Chapter 2 Recharge

Cards (43)

  • Which of the following would be considered a source document in an accounting system?
    • Purchase order
    • Sales receipt
    • Checks
    • Payroll records
  • The correct definition of an "account" includes which of the following?
    A record of increases and decreases in a specific asset, liability, equity, revenue, or expense item
  • It is a collection of all accounts with their activity and balances that exist in a business.?
    General Ledger
  • It is a book of original entry that includes a chronological record of all transactions that have occurred within a business during a period occurred?
    A journal
  • It is a list of each account and its balance at any given time and is used to verify that debits = credits?
    A trial balance
  • It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account?
    A chart of accounts
  • Which statement best describes a T-account?
    A T-account represents a ledger account and is a tool used to understand the effects of transactions.
  • Choose the accounts below, that would have a normal credit balance. ?
    • Common Stock
    • Accounts Payable
    • Unearned Revenues
    • Revenues
  • Transferring entries from the general journal to the general ledger is called (posting/preparing/journalizing)?
    Posting
  • L. Lyons started a business and invested $4,000 in exchange for common stock. Illustrate how to record the transaction in the T-accounts by completing the following sentence. The Cash account would be (debited) on the (left) side of the T-account and the Common stock account would be (credited) on the (right) side of the T-account.?
  • When preparing a trial balance, there are certain steps that need to be followed. Place the following steps in the correct order.?
    1. List each account title and its amount from the general ledger
    2. compute the total of debit balances and the total credit balances
    3. Verify that total debit balances equal total credit balances
  • Which of the following statements is the best definition of the Chart of Accounts?
    It is a list of all ledger accounts in a business and includes an identification number assigned to each account.
  • Which of the following statements is (are) correct regarding a T-account?
    • A T-account represents a ledger account.
    • A T-account will show the debit and credit effects of transactions.
    • A T-account may be used as a tool to visualize the effects of a transaction.
  • Which set of accounts below would have a normal debit balance?
    Expenses; Dividends; Cash
  • J. Jackson invested $1,000 in his business in exchange for common stock. Show how to use T-accounts to record this transaction by selecting the correct answer below.?
    Debit Cash; credit Common stock
  • Which of the following statements correctly explains how to prepare a trial balance?
    • List each account title and its amount from the ledger.
    • Compute the total of debit balances and the total of credit balances.
    • Verify that the total debit balances equals the total credit balances.
  • Which statement best describes a T-account?
    A T-account represents a ledger account and is a tool used to understand the effects of transactions.
  • Which statement is correct regarding entering transactions into the accounting equation?
    After recording a transaction, the total of the right side of the accounting equation must equal the total of the left side of the accounting equation.
  • A trial balance is a(n) (list/balance/chart)of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of the credit account balances.?
    chart
  • Which of the following statements is the best definition of the Chart of Accounts? It is a list of all ledger accounts in a business and includes an identification number assigned to each account.
  • Which of the following financial statements report(s) the financial position of a business over a period of time?
    • Income statement
    • Statement of cash flows
    • Statement of retained earnings
  • Identify which of the following formulas correctly defines how to calculate the debt ratio. Total liabilities/Total assets
  • Which of the following statements is (are) correct regarding a T-account?
    • A T-account may be used as a tool to visualize the effects of a transaction.
    • A T-account represents a ledger account.
    • A T-account will show the debit and credit effects of transactions.
  • Which set of accounts below would have a normal debit balance? Expenses; Dividends; Cash
  • J. Jackson invested $1,000 in his business in exchange for common stock. Show how to use T-accounts to record this transaction by selecting the correct answer below.?
    Debit Cash; credit Common stock
  • Which of the following statements explains what a trial balance is?
    A trial balance confirms that the sum of debit account balances equals the sum of credit account balances.
  • It is a collection of all accounts with their activity and balances that exist in a business.?
    A general ledger
  • It is a book of original entry that includes a chronological record of all transactions that have occurred within a business during a period occurred?
    A journal
  • It is a list of each account and its balance at any given time and is used to verify that debits = credits?
    A trial balance
  • It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account?
    A chart of accounts
  • Which of the following statements correctly explains how to prepare a trial balance? 
    • List each account title and its amount from the ledger.
    • Verify that the total debit balances equals the total credit balances.
    • Compute the total of debit balances and the total of credit balances.
  • Which statement best describes a T-account? A T-account represents a ledger account and is a tool used to understand the effects of transactions.
  • Choose the accounts below, that would have a normal credit balance.?
    • Revenues
    • Unearned Revenues
    • Common Stock
    • Accounts Payable
  • Which of the following would be considered a source document in an accounting system?
    • Purchase order
    • Sales receipt
    • Payroll records
    • Checks
  • A trial balance is a(n) (list/balance/chart) of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of the credit account balances.?
    list
  • Which of the following is the best definition of a source document in the accounting process?
    A source document identifies and describes transactions and is the basis for entering an event into the accounting system.
  • An account is a record of increases and ?  in a specific asset, liability, equity, revenue or expense.
    decreases
  • Which of the following is correct regarding posting a transaction?
    Posting means to transfer journal information to a ledger.
  • Which statement is correct regarding entering transactions into the accounting equation?
    After recording a transaction, the total of the right side of the accounting equation must equal the total of the left side of the accounting equation.
  • In defining a reporting period, which of the following statements is (are) correct?
    • A one-year reporting period is known as the fiscal year.
    • A reporting period is determined by the business.
    • A reporting period can be one month, one quarter or one year.