Question 1

Explain an accrued expense.

Accepted Answer

The answer of Explain an accrued expense....

Question 2

Some adjusting entries involve estimated amounts because they are based on expected future events.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best describes the double entry rule?

Accepted Answer

A)  There can only be two entries for each transaction. 
B)  There must be both an increase and a decrease for an asset account for each transaction. 
C)  One entry must affect owner's equity. 
D)  The total amount of the debit entries must equal the total amount of the credit entries.

Question 4

The __________________ rule states that in the recording of a transaction, the total amount of the debit entries must equal the total amount of the credit entries for the transaction.

Accepted Answer

The answer of The __________________ rule states that in the...

Question 5

Asset accounts are increased by __________ entries and decreased by ________ entries.

Accepted Answer

The answer of Asset accounts are increased by __________ entries...

Question 6

Suppose that a customer pays a deposit for work to be done next year. The business will increase an asset account (cash at bank) and will:

Accepted Answer

A)  Increase owner's equity (revenue). 
B)  Decrease an asset (accounts receivable). 
C)  Increase a liability (unearned revenue). 
D)  Increase an asset (revenue).

Question 7

Debit entries always increase the balance of an account.

Accepted Answer

A) True 
 B)False

Question 8

A general journal includes information about each transaction including the _______ of the transaction, the _________ to be debited and credited, the amounts of ______ and _______ entries and an explanation of each transaction.

Accepted Answer

The answer of A general journal includes information about each...

Question 9

A _______________ is the entire set of accounts that a business uses.

Accepted Answer

The answer of A _______________ is the entire set of...

Question 10

The steps a business completes during each accounting period to record, retain and report the monetary information from its transactions are referred to as the ______________ __________.

Accepted Answer

The answer of The steps a business completes during each...

Question 11

A chart of accounts is a numbering system designed to organise a business' accounts efficiently and to reduce____________ in the _____________ and ________________ process.

Accepted Answer

The answer of A chart of accounts is a numbering...

Question 12

Describe the use and contents of a trial balance.

Accepted Answer

The answer of Describe the use and contents of a...

Question 13

List and describe the three elements of a balance sheet.

Accepted Answer

The answer of List and describe the three elements of...

Question 14

A business uses information from source documents to record each transaction in a ________________.

Accepted Answer

The answer of A business uses information from source documents...

Question 15

What does an income statement summarise and what are the main features of an income statement?

Accepted Answer

The answer of What does an income statement summarise and...

Question 16

The total amount of the debit entries is normally different to the amount of the credit entries in the general ledger accounts.

Accepted Answer

A) True 
 B)False

Question 17

A business uses ________________ to record and retain monetary information from its transactions.

Accepted Answer

The answer of A business uses ________________ to record and...

Question 18

Which of the following is not part of the information contained in a general journal?

Accepted Answer

A)  The name of the person who prepared the journal. 
B)  The date of the transaction. 
C)  The accounts to be debited and credited. 
D)  The amounts of the debit and credit entries.

Question 19

The journal entry to record the owner's investment of $20 000 cash in to their business is:

Accepted Answer

A)  Asset account (cash at bank) increases (debit) by $20 000 and a liability (loan) increases (credit) by $20 000. 
B)  Liability (loan) increases (debit) by $20 ,000 and owner's equity increases (credit) by $20 000. 
C)  Asset (cash at bank) increases (debit) by $20,000 and owner's equity increases (credit) by $20 000. 
D)  Liability (loan) decreases (debit) by $20,000 and owner's equity increases (credit) by $20,000.

Question 20

A balance sheet shows:

Accepted Answer

A)  the financial performance of a business for a specific period of time. 
B)  the financial position of a business at a specific point in time. 
C)  both the financial performance and financial position of a business at a specific point in time. 
D)  the titles of all account in the general ledger, the debit or credit balances of each account and the totals of the debit and credit balances

Exam 5: Recording, Storing and Reporting Accounting Information

Explain an accrued expense.

Some adjusting entries involve estimated amounts because they are based on expected future events.

Which of the following best describes the double entry rule?

The __________________ rule states that in the recording of a transaction, the total amount of the debit entries must equal the total amount of the credit entries for the transaction.

Asset accounts are increased by __ entries and decreased by entries.

Suppose that a customer pays a deposit for work to be done next year. The business will increase an asset account (cash at bank) and will:

Debit entries always increase the balance of an account.

A general journal includes information about each transaction including the ___ of the transaction, the _ to be debited and credited, the amounts of and _____ entries and an explanation of each transaction.

A _______________ is the entire set of accounts that a business uses.

The steps a business completes during each accounting period to record, retain and report the monetary information from its transactions are referred to as the ____ .

A chart of accounts is a numbering system designed to organise a business' accounts efficiently and to reduce______ in the _ and __________ process.

Describe the use and contents of a trial balance.

List and describe the three elements of a balance sheet.

A business uses information from source documents to record each transaction in a ________________.

What does an income statement summarise and what are the main features of an income statement?

The total amount of the debit entries is normally different to the amount of the credit entries in the general ledger accounts.

A business uses ________________ to record and retain monetary information from its transactions.

Which of the following is not part of the information contained in a general journal?

The journal entry to record the owner's investment of $20 000 cash in to their business is:

A balance sheet shows: