Exam 2: Recording Business Transactions

A T-account is a summary device with credits posted on the left side of the vertical line.

Employees worked and a business paid salaries of $6,000 in cash.Record the transaction in the journal.

Which of the following is used by both internal and external users?

Which is a TRUE statement regarding the accounting equation?

A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n)________.

Debit refers to the right side of the T-account,and credit refers to the left side.

List the five steps of the journalizing and posting process.

Which of the following is the record holding all the accounts,the changes in those accounts,and their balances?

The following are selected current month's balances for Allbright Enterprises. Based on this information,what is the total amount of debits for the trial balance?

Balancing errors can be detected by computing the difference between total debits and total credits on the trial balance.List three actions that can then be used to find the errors.

Liabilities are economic resources that are expected to benefit the business in the future.

A liability account is increased by a debit.

Regarding T-accounts,which of the following statements is correct?

Consider the following accounts and identify each as an asset (A),liability (L),or equity (E).

The debt ratio shows the proportion of assets financed with debt.

A listing of all accounts in numerical order is called a(n)________.

A sole proprietorship has the following transactions: The business receives $20,000 cash from the owner in exchange for capital. The business purchases $700 of office supplies on account. The business purchases $4,000 of furniture on account. The business performs services for various clients totaling $11,000 on account. The business pays $2,500 for salaries expense and $3,500 for rent expense. The business pays $700 to a supplier for the office supplies purchased earlier. The business collects $2,000 from one of its clients for services rendered earlier in the month. At the end of the month,all journal entries are posted to the ledger.Accounts Receivable will appear as which of the following?

The trial balance reports the balances of assets,liabilities,and equity.

A bank deposit slip is a source document that shows the total of all checks written by a company.

After posting the journal entries from the journal to the ledger,the accounting equation should be in balance.