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Questions and Answers
What is the purpose of transaction analysis in accounting?
What is the purpose of transaction analysis in accounting?
- To identify and classify transactions (correct)
- To prepare financial statements
- To record journals and ledgers
- To calculate salaries and wages
Salaries and wages are a type of asset account.
Salaries and wages are a type of asset account.
False (B)
What is the purpose of a general journal?
What is the purpose of a general journal?
To record infrequent or non-routine transactions that cannot be recorded in a specialized journal.
The _______________ ledger is a summary of all the general ledger accounts.
The _______________ ledger is a summary of all the general ledger accounts.
Match the following accounts with their respective ledger:
Match the following accounts with their respective ledger:
A company pays $10,000 in salaries and wages to its employees. What is the effect on the accounting equation and what would be the journal entry to record this transaction?
A company pays $10,000 in salaries and wages to its employees. What is the effect on the accounting equation and what would be the journal entry to record this transaction?
A company purchases office supplies on credit for $5,000. What is the effect on the accounting equation and what would be the journal entry to record this transaction?
A company purchases office supplies on credit for $5,000. What is the effect on the accounting equation and what would be the journal entry to record this transaction?
A company has a debit balance of $15,000 in its accounts payable account at the beginning of the period. During the period, it makes payments of $8,000 and purchases on credit of $12,000. What is the ending balance of the accounts payable account?
A company has a debit balance of $15,000 in its accounts payable account at the beginning of the period. During the period, it makes payments of $8,000 and purchases on credit of $12,000. What is the ending balance of the accounts payable account?
A company has a credit balance of $20,000 in its accounts receivable account at the beginning of the period. During the period, it receives cash of $15,000 and makes sales on credit of $18,000. What is the ending balance of the accounts receivable account?
A company has a credit balance of $20,000 in its accounts receivable account at the beginning of the period. During the period, it receives cash of $15,000 and makes sales on credit of $18,000. What is the ending balance of the accounts receivable account?
A company has a general ledger account called 'Rent Expense' with a debit balance of $10,000 at the beginning of the period. During the period, it pays rent of $8,000 and makes a journal entry to record rent expense of $12,000. What is the ending balance of the 'Rent Expense' account?
A company has a general ledger account called 'Rent Expense' with a debit balance of $10,000 at the beginning of the period. During the period, it pays rent of $8,000 and makes a journal entry to record rent expense of $12,000. What is the ending balance of the 'Rent Expense' account?
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Study Notes
Accounting Exam Study Notes
Transaction Analysis
- Identify and record financial transactions, such as revenue, expenses, assets, liabilities, and equity
- Classify transactions into debit and credit entries
- Understand the accounting equation: Assets = Liabilities + Equity
Salaries and Wages
- Salaries and wages are expenses incurred by a business to compensate employees
- Calculate salary and wage expenses, including gross pay, deductions, and net pay
- Record salaries and wages in the accounting system
Journals, GL, Debtors, and Creditors
- Journals: record transactions chronologically, with debit and credit entries
- General Ledger (GL): a ledger that summarizes all transactions, organized by account
- Debtors: individuals or businesses that owe the company money
- Creditors: individuals or businesses to whom the company owes money
- Record and manage transactions related to debtors and creditors
General Journal and Ledgers
- General Journal: a journal that records non-routine transactions, such as corrections, adjustments, and closing entries
- Ledgers: records of all transactions, including the General Ledger, Accounts Payable Ledger, and Accounts Receivable Ledger
- Understand the purpose and content of each ledger
Accounting Exam Study Notes
Transaction Analysis
- Identify and record financial transactions, such as revenue, expenses, assets, liabilities, and equity
- Classify transactions into debit and credit entries
- Understand the accounting equation: Assets = Liabilities + Equity
Salaries and Wages
- Salaries and wages are expenses incurred by a business to compensate employees
- Calculate salary and wage expenses, including gross pay, deductions, and net pay
- Record salaries and wages in the accounting system
Journals, GL, Debtors, and Creditors
- Journals: record transactions chronologically, with debit and credit entries
- General Ledger (GL): a ledger that summarizes all transactions, organized by account
- Debtors: individuals or businesses that owe the company money
- Creditors: individuals or businesses to whom the company owes money
- Record and manage transactions related to debtors and creditors
General Journal and Ledgers
- General Journal: a journal that records non-routine transactions, such as corrections, adjustments, and closing entries
- Ledgers: records of all transactions, including the General Ledger, Accounts Payable Ledger, and Accounts Receivable Ledger
- Understand the purpose and content of each ledger
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