Exam 2: The Recording Process

Which of the following correctly identifies normal balances of accounts?

A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.

The steps in preparing a trial balance include all of the following except

A trial balance would only help in detecting which one of the following errors?

Management could determine the amounts due from customers by examining which ledger account?

A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits. a. Can the student be successful in the course without an understanding of the rules of debits and credits? b. Explain the rules of debits and credits in a way that will help him understand them.

An account is often referred to as a T-account because of the way it is constructed.

A debit is not the normal balance for which account listed below?

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

The four subdivisions of stockholders' equity are: ________________, ________________, ________________, and ________________.

Revenues are a subdivision of retained earnings.

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

For the basic accounting equation to stay in balance, each transaction recorded must

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

For each of the following accounts, indicate the effects of (a) a debit and (b) the normal account balance. 1. Notes Payable 2. Prepaid Insurance 3. Salaries and Wages Expense 4. Service Revenue 5. Equipment 6. Common Stock

Journalize the following transactions for Xiu Xiu Company for June 2015, the company's first month of operations. You may omit explanations for the transactions. 1. Purchased equipment on account for $9,000. 2. Billed customers $5,000 for services performed. 3. Made payment of $2,300 on account for equipment purchased earlier in month. 4. Collected $2,900 on customer accounts.

Electrelane Company showed the following balances at the end of its first year: Cash \ 4,000 Prepaid insurance 7,000 Accounts receivable 5,000 Accounts payable 4,000 Notes payable 6,000 Common stock 2,000 Dividends 1,000 Revenues 32,000 Expenses 25,000 What did Electrelene Company show as total credits on its trial balance?

The final step in the recording process is to

The ledger should be arranged in

A trial balance will not balance if