Posting a transaction means ________. A) calculating the balance in an account B) transferring data from the journal to the ledger C) preparing a summary of account balances D) finding the account number in the chart of accounts ANSWER B
Date: September 2nd, 2020
The operating cycle is the time span required for a business to repay its long-term liabilities. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders’ equity below. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Source documents provide the evidence and data for accounting transactions. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following is a source document that provides the evidence and data for accounting transactions? A) Journal B) Sales invoice C) Ledger D) Trial balance ANSWER B
Date: September 2nd, 2020
The matching principle is also called the ________. A) adjusting entry concept B) revenue recognition principle C) expense recognition principle D) time period concept ANSWER C
Date: September 2nd, 2020
The process of transferring data from the ledger to the journal is called posting. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
To match expenses against revenues means to ________. A) add expenses incurred during one period from revenues earned during that same period B) subtract expenses incurred during one period from revenues earned during the previous period C) add expenses incurred during one period from revenues earned during the previous period D) subtract expenses incurred during […]
Date: September 2nd, 2020
The matching principle states that ________. A) financial statements can be prepared for specific periods B) a business’s activities can be sliced into small time segments C) all expenses should be recorded when they are incurred during the period D) companies should record revenue when it has been earned ANSWER C
Date: September 2nd, 2020
In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total increases are $7,200 and the total decreases are $4,000. This means that the ending balance of the account is a credit balance of $3,200. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
