Exam 5: Recording, Storing and Reporting Accounting Information

When the business earns revenue, the ultimate effect of the revenue increase is to increase the ________ __________.

Which of the following is NOT normally shown in the statement of changes in equity?

Unearned revenue is an economic resource of a business resulting from an advance receipt of cash.

Adjusting entries are journal entries that a business makes at the end of its accounting period to bring the business' ____________ and _____________ account balances up to date and to show the correct ending balances in its __________ and ___________ accounts.

A business records the apportionment of the cost of each prepaid item between an expense and an asset in an adjusting entry in its accounts payable subsidiary ledger.

A prepaid expense is an economic resource for which a business has paid cash and expects to use in its operating activities in the near future.

Adjusting entries are journal entries that a business makes at the end of its accounting period to bring the business revenue and expense account balances up-to-date and to show the correct ending balances in its asset and liability accounts.

A business with a manual accounting system usually posts at the end of each year.

The left side of the T account is called the _________ side and the right side is called the ______ side.

A trial balance is:

____________ _____________ are journal entries a business makes at the end of the accounting period to create a zero account in each revenue, expense and withdrawal account.

MJay's Accounting Ltd is a small accounting services business which commenced business on 1 January 2019. During the first month of operations, these events and transactions occurred: Prepare all of the journal entries for the above noted transactions. Note: narrations are not required and GST should be ignored.

The liability ____________ _____________ is the obligation of a business to provide goods or services in the future, resulting from an advance receipt of cash.

The purpose of adjusting entries is to:

The balance in the Accounts Payable control account must always _________ the total of all the accounts in the accounts payable subsidiary ledger or file.

Which of the following is an example of an adjusting entry involving an estimated item?

The owner's equity of a company is called shareholders' equity and consists of at least two parts:

Withdrawal accounts ate increased by debit entries and decreased by credit entries.

Which of the following financial statements is normally prepared first?

If A Ltd pays B Ltd $340 for inventory purchased on account three weeks earlier, the liability account is decreased by this amount to recognise the $340 paid.