FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: The Recording Process

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

The standard form of a journal entry has the

A) debit account entered first and indented.
B) credit account entered first and indented.
C) debit account entered first at the extreme left margin.
D) credit account entered first at the extreme left margin.

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is false about a journal?

A) It discloses in one place the complete effects of a transaction.
B) It provides a chronological record of transactions.
C) It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared.
D) It keeps in one place all the information about changes in specific account balances.

Correct Answer

verified

Show Answer

Question 93

Multiple Choice

Review LaterAdd Note

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

After transaction information has been recorded in the journal, it is transferred to the

A three column form of account is so named because it has columns for

When three or more accounts are required in one journal entry, the entry is referred to as a

A chart of accounts usually starts with

In the first month of operations for Widget Industries, the total of the debit entries to the cash account amounted to $8,000 ($4,000 investment by the owner and revenues of $4,000) . The total of the credit entries to the cash account amounted to $5,000 (purchase of equipment $2,000 and payment of expenses $3,000) . At the end of the month, the cash account has a(n)

The drawing account is a subdivision of the owner's capital account and appears as an expense on the income statement.

The procedure of transferring journal entries to the ledger accounts is called

A credit balance in a liability account indicates that an error in recording has occurred.

Transactions are entered in the ledger accounts and then transferred to journals.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Which of the following rules is incorrect?

Debit and credit can be interpreted to mean increase and decrease, respectively.

The ledger should be arranged in

Posting of journal entries should be done in

At January 1, 2010, LeAnna Industries reported owner's equity of $130,000. During 2010, LeAnna had a net loss of $30,000 and owner drawings of $20,000. At December 31, 2010, the amount of owner's equity is

The recording process becomes more efficient and informative if all transactions are recorded in one account.