Exam 2: The Recording Process

An account consists of

The double-entry accounting system is the basis of accounting systems

The name given to entering transaction data in the journal is

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

A compound journal entry requires several debits to one account and several credits to one account.

When journalizing, the reference column is

If a company has overdrawn its bank balance, then

Which of the following statements is incorrect?

At January 1, 2015, Alligator Industries reported retained earnings of $150,000. During 2015, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2015, the amount of retained earnings is

A trial balance may balance even when each of the following occurs except when

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

At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

If a revenue account is credited, the revenue account is increased.

The left side of an account is

The usual sequence of steps in the transaction recording process is:

Which of the following journal entries is recorded correctly and in the standard format? a. Salaries and Wages Expense $\quad$$\quad$ 500 $\quad$ Cash $\quad$$\quad$ 1,500 $\quad$ Advertising Expense $\quad$$\quad$ 1,000 b. Salaries and Wages Expense $\quad$$\quad$ 500 $\quad$ Advertising Expense $\quad$$\quad$ 1,000 $\quad$ Cash $\quad$$\quad$ 1,500 c. Cash $\quad$$\quad$ 1,500 $\quad$ Salaries and Wages Expense $\quad$$\quad$ 500 $\quad$ Advertising Expense $\quad$$\quad$ 1,000 d. Salaries and Wages Expense $\quad$$\quad$ 500 $\quad$ Advertising Expense $\quad$$\quad$ 1,000 $\quad$ Cash $\quad$$\quad$ 1,500

The standard format of a journal would not include

Credits

A T-account is