Exam 2: Transaction Analysis

When the trial balance is out of balance due to a slide-type error, the difference between total debits and total credits will be evenly divisible by 9.

Double-entry accounting records only those transactions affecting the income statement.

Making a cash payment to settle a debt would include a:

A listing of all of the accounts that make up the ledger is called the:

Which of the following business events would NOT be recorded in a company's accounting records?

The left side of a T-account is always the:

The normal balance of the Accounts Payable account is a __________ because it is a(n)__________ account.

The normal balance of the Supplies account is a __________ because it is a(n)__________ account.

The normal balance of a revenue account is a __________ because revenues increase __________.

A grouping of all the T-accounts with their balances is called the:

Which accounts are increased by debits?

The purchase of office furniture for cash would include a debit to:

Notes payable, accounts payable, taxes payable and salaries payable are all examples of:

Paying a previous dividend due to the company's stockholders would include a debit to:

Which type of account is decreased when a company pays its employees with cash?

The payment for monthly rent of an office building would include a:

A chronological record (or history)of an entity's transactions is called a:

The amount remaining in an account is called its balance.

A trial balance is:

Which of the following statements regarding accounts is TRUE?