Podcast
Questions and Answers
Which of the following accounts have a normal debit balance?
Which of the following accounts have a normal debit balance?
- Liabilities and Retained Earnings
- Liabilities and Revenues
- Expenses and Assets (correct)
- Assets and Revenues
Which of the following are DECREASED with a debit?
Which of the following are DECREASED with a debit?
- Liabilities and Revenues (correct)
- Expenses and Assets
- Liabilities and Retained Earnings
- Assets and Revenues
Transactions are originally recorded in a(n)
Transactions are originally recorded in a(n)
- Trial Balance
- Expanded Accounting Equation
- Journal (correct)
- Ledger
Journalizing a transaction means:
Journalizing a transaction means:
Which of the following statements about expenses is CORRECT?
Which of the following statements about expenses is CORRECT?
For Accounts Payable, the classification of the account and its normal balance are:
For Accounts Payable, the classification of the account and its normal balance are:
The process of transferring information from the journal to the ledger is called
The process of transferring information from the journal to the ledger is called
Which of the following is the correct order of steps to journalize an entry?
Which of the following is the correct order of steps to journalize an entry?
The normal sequence of information in an accounting system is:
The normal sequence of information in an accounting system is:
A business person starts a company by giving the company $20,000 cash and receiving stock. How would you record the information for the business?
A business person starts a company by giving the company $20,000 cash and receiving stock. How would you record the information for the business?
A business buys $600 of supplies on account. How would you record the transaction?
A business buys $600 of supplies on account. How would you record the transaction?
A company purchases a $100,000 building, makes a down payment of $15,000, and signs a note for the rest. How would you record the transaction?
A company purchases a $100,000 building, makes a down payment of $15,000, and signs a note for the rest. How would you record the transaction?
In the T-Account LEDGER, where would you find the ending balance of an account?
In the T-Account LEDGER, where would you find the ending balance of an account?
ABC Company made a payment on account of $350. How would you record this transaction?
ABC Company made a payment on account of $350. How would you record this transaction?
ABC Company received a payment on account of $350. How would you record this transaction?
ABC Company received a payment on account of $350. How would you record this transaction?
Flashcards are hidden until you start studying
Study Notes
Account Balances
- Accounts with a normal debit balance include Expenses and Assets.
- Liabilities and Revenues are decreased with a debit entry.
Transaction Recording
- Transactions are first recorded in a Journal before transferring them to the Ledger.
- Journalizing involves recording information through a journal entry.
Expenses
- Expenses decrease stockholders' equity; therefore, expenses have a normal debit balance.
Accounts Classification
- Accounts Payable is classified as a liability with a normal credit balance.
Posting Process
- The process of transferring entries from the journal to the ledger is known as Posting.
Journalization Steps
- Steps to journalize transactions: identify affected accounts, determine the increase or decrease, and then record the transaction.
Information Order
- The standard order in an accounting system is: Source document, Journal, Ledger.
Business Transactions
- When starting a company, a transaction involving $20,000 cash would be recorded as:
- Cash 20,000
- Common Stock 20,000
- Purchasing supplies on account worth $600 is recorded as:
- Supplies 600
- Accounts Payable 600
- Buying a building valued at $100,000 with a $15,000 down payment and the rest financed with a Note Payable is recorded as:
- Building 100,000
- Cash 15,000
- Note Payable 85,000
T-Account Ledger
- The ending balance of an account in a T-Account Ledger is found on the increase side of that account.
Payment Transactions
- Making a payment of $350 on account is recorded as:
- Accounts Payable 350
- Cash 350
- Receiving a payment on account of $350 is documented as:
- Cash 350
- Accounts Receivable 350
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
