Exam 2: The Recording Process

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Posting is the process of proving the equality of debits and credits in the trial balance.

Which one of the following represents the expanded basic accounting equation?

Revenues are

The chart of accounts lists accounts and the account numbers that identify their location in the ledger starting with the accounts that are reported on the income statement.

The rules for debit and credit and the normal balance of Share Capital-Ordinary are the same as for assets.

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

A numbering system for a chart of accounts

The general ledger contains all the accounts that are reported on the statement of financial position, whereas the general journal contains all the accounts that are reported on the income statement.

Martin's Mail Service purchased equipment for $3,000.Martin paid $500 in cash and signed a note for the balance.Martin debited the Equipment account, credited Cash and

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Currency signs are typically used only in the trial balance and the financial statements.

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

The trial balance

A compound journal entry involves

During February 2011, its first month of operations, the owner of Alona Enterprises invested cash of $50,000.Alona had cash revenues of $8,000 and paid expenses of $14,000.Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

The first step in the recording process is to

Which of the following is false about a journal?

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

Under the double-entry system, revenues must always equal expenses.