Podcast
Questions and Answers
Cash, AR, and PPE are examples of nominal accounts.
False
Real accounts are closed at the end of the accounting period.
False
Prepaid expenses are an example of a mixed account.
True
A clearing account holds information temporarily until it is transferred to other ledger accounts.
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A controlling account summarizes information in a subsidiary ledger.
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A suspense account holds information temporarily until it is disposed of.
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Reciprocal accounts have counterparts in other books or ledgers.
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Principal accounts can stand alone.
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Auxiliary accounts are technically assets, liabilities, income, or expenses.
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Posting is the process of transferring data from the journal to the general ledger and subsidiary ledger.
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True or false: There are 9 basic steps in the accounting cycle?
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True or false: The accounting cycle consists of two phases known as recording and summarizing?
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True or false: Analyzing the transaction involves gathering information from source documents?
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True or false: The equation 'assets equals liabilities plus equity' represents the financial position?
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True or false: Journalizing is the process of recording transactions in the appropriate journals?
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True or false: A journal is a chronological record of all transactions?
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True or false: Special journals are more efficient in recording a large number of like transactions?
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True or false: The sales journal is used for recording all types of cash receipts?
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True or false: The purchase journal is used to record all purchases on account?
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True or false: Real accounts are closed and carryover to the next accounting period?
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