Exam 3: Beginning the Accounting Cycle

The purpose of posting is to:

A fiscal year is always January 1 through December 31.

A credit to a liability account was posted to the capital account. This would cause:

The time period for which an income statement is prepared is called the calendar year.

If Prepaid Rent has been debited, it is likely that:

Which of the following entries records the acquisition of office supplies for cash?

Prepare in proper form journal entries for the following transactions. Omit explanations. December 2 Owner made a cash investment into the company $2,500 6 Bought supplies on account $100. 10 Paid salaries, $700 16 Paid for supplies purchased on December 6 21 Received company telephone bill, to be paid later, $50

Post the following to the ledger of Smith Services. The partial chart of accounts is: 111 Cash 121 Accounts Receivable 211 Accounts Payable 411 Service Fees Earned

A journal entry affecting three or more accounts is called a:

Renzi's Volleyball Gym purchased equipment for $1,300. It made a down payment of $500 with the remainder on account. The journal entry to record this transaction is:

The trial balance lists the accounts:

Which of the following entries would record the payment of a utility bill?

Financial statements that are prepared for a period shorter than a year are called:

A compound journal entry affects more than two accounts in the transaction.

A debit to the liability account was posted to an expense account. This would cause:

To correct an error made in the journal (prior to posting in the ledger):

The time period for which a statement of owner's equity is prepared is a(n):

If Fees Earned has been credited, it is most likely that:

A business's fiscal year that ends at the same time as the slow seasonal period begins is the natural business year.

If the trial balance is in balance, it proves that all transactions were properly journalized.