When financial records for a business and for its owner's personal belongings are not mixed, this is an application of the Business Entity accounting concept. - ANSWERSTrue
The capital account is an owner's equity account. - ANSWERSTrue
An accounting device used to analyze transactions is a T...
Accounting Final Exam Review
Questions & Answers
When financial records for a business and for its owner's personal belongings are not
mixed, this is an application of the Business Entity accounting concept. -
ANSWERSTrue
The capital account is an owner's equity account. - ANSWERSTrue
An accounting device used to analyze transactions is a T account. - ANSWERSTrue
When cash is paid for supplies, the supplies account is increased by a debit. -
ANSWERSTrue
Increases in expense accounts are recorded as debits because they decrease the
owner's capital accounts. - ANSWERSTrue
Increases in revenue accounts are recorded as debits because they increase the
owner's capital accounts. - ANSWERSFalse. Increases in revenue accounts are
recorded as credits.
Accounts payable accounts are increased with a debit. - ANSWERSFalse. Accounts
payable accounts are increased with a credit because they are liabilities.
Increases in drawing accounts are recorded as credits. - ANSWERSFalse. Increases in
drawing accounts are recorded as debits.
Source document ordering bank to pay cash from a bank account. - ANSWERSCheck
Source document that describes goods or services sold, quantity, and price. -
ANSWERSInvoice
Source document used to record a sale on account. - ANSWERSSales Invoice
Source document giving written acknowledgement for cash received. -
ANSWERSReceipt
Source document on which a brief message is written describing a transaction. -
ANSWERSMemorandum
, A transaction recorded in a journal is not considered a permanent record. -
ANSWERSFalse. A transaction recorded in a journal is considered a permanent record.
A journal amount column headed with an account title is a special amount column. -
ANSWERSTrue
The procedure of arranging accounts in a general ledger, assigning account numbers,
and keeping current records is posting. - ANSWERSFalse. It is file maintenance.
The day of the month is written on each journal page only for the first entry. -
ANSWERSFalse. It is written for every entry.
A journal page is proved by verifying that the total debits equals the total credits. -
ANSWERSTrue
Posting is transferring information from a journal entry to a ledger account. -
ANSWERSTrue
If the previous account balance and the current entry posted to an account are both
debits, the new account balance is a debit. - ANSWERSTrue.
The total of the General Credit column is not posted. - ANSWERSTrue
A ledger that contains all accounts needed to prepare financial statements is a general
ledger. - ANSWERSTrue
Separate amounts in general amount columns are not posted individually. -
ANSWERSFalse. Separate amounts in general amount columns are posted individually.
The posting reference should always be recorded in the journal's "Post Ref." column
before accounts are recorded in the ledger. - ANSWERSFalse. The posting reference
should always be recorded in the journal's "Post Ref." column after accounts are
recorded in the ledger.
A check mark in parentheses below a General Debit column total indicates that the total
is not posted. - ANSWERSTrue
With the exception of the totals lines, the "Post. Ref." column is completely filled in with
either an account number or a check mark. - ANSWERSTrue
Ownership of a check cannot be transferred. - ANSWERSFalse. It can be transferred.
When a bank statement is received, the depositor should verify its accuracy
immediately. - ANSWERSTrue
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