Exam 2: The Recording Process

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

Companies report share capital-ordinary and dividends in the equity section of the statement of financial position.

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

One difference between GAAP and IFRS is that

The chart of accounts is a special ledger used in accounting systems.

Accounts maintained within the ledger that appear on the statement of financial position include all of the following except

During 2014, its first year of operations, Yaspo's Bakery had revenues of $100,000 and expenses of $55,000. The business paid dividends of $30,000. What is the amount of equity at December 31, 2014?

In the first month of operations for Widget Industries, the total of the debit entries to the cash account amounted to ₤9,000 (₤5,000 investment by the owners and revenues of ₤4,000). The total of the credit entries to the cash account amounted to ₤5,000 (purchase of equipment ₤2,000 and payment of expenses ₤3,000). At the end of the month, the cash account has a(n)

For the accounts listed below, indicate if the normal balance of the account is a debit or credit. 10. Notes Payable

Which of the following journal entries is recorded correctly and in the standard format?

Which of the following statements is true?

An account will have a credit balance if the

The transactions of the Buy It Now Store are recorded in the general journal below. You are to post the journal entries to T-accounts.

A simple journal entry requires only one debit to an account and one credit to an account.

For each of the following accounts indicate (a) the type of account (Asset, Liability, Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance. Example

Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that insure that the ledger accounts are correct? Explain.

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

Debit and credit can be interpreted to mean increase and decrease, respectively.

At September 1, 2014, Crews Co. reported equity of ₤204,000. During the month, Crews generated revenues of ₤30,000, incurred expenses of ₤18,000, purchased equipment for ₤7,500 and paid dividends of ₤3,000. What is the amount of equity at September 30, 2014?

On January 14, Ericsson Industries purchased supplies of $500 on account. The entry to record the purchase will include