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39 Cards in this Set
- Front
- Back
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If the credit to record the purchase of supplies on account is not posted, |
Liabilities will be understated. |
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Increase and decrease stockholders' equity |
Net income, sale of stock net loss dividends |
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Which statement is false? |
A trial balance is the same as a balance sheet. |
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Purchasing computer equipment for cash will |
have not effect on total assets, total liabilities, or stockholders' equity. |
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Purchasing a building for $95k by paying cash of $25k and signing a note payable for $70k will |
Increase both total assets and total liabilities by $70k. |
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An investment of cash by stockholders into the business will |
increase stockholders' equity. |
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If the credit to record the payment of an account payable is not posted, |
cash will be overstated. |
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Purchasing a laptop computer on account will |
all of the above. |
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which is the correct sequence for recording transactions and preparing financial statements? |
Journal, ledger, trial balance, financial statements |
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Where do we first record a transaction? |
journal |
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Which of the following transactions will increase an asset and increase a liability? |
Buying equipment on account |
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A debit entry to an account |
increases assets. |
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Which of the following transactions will increase an asset and increase stockholders' equity? |
Performing a service on account for a customer. |
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Increase an asset and liability |
Purchase of asset on account Borrow money |
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decrease an asset and owners' equity |
Payment of dividends to owners Expense transaction |
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decrease an asset and a liability. |
Return an asset purchased on account Pay a liability |
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Increase an asset and owners' equity |
Issuance of stock Revenue transaction |
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Increase one asset and decrease another asset. |
Purchase of asset for cash Collection of an account receivable sale of asset for cash |
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Which account types normally have a credit balance? |
Liabilities an Revenue b and c |
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Debit |
Left side of an account |
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Expense |
The cost of operating a business; a decrease in stockholders' equity |
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Net income |
Revenues - Expenses |
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ledger |
grouping of accounts |
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posting |
copying data from the journal to the ledger |
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normal balance |
side of account where increases are recorded |
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payable |
always a liability |
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journal |
record of transaction |
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recievable |
side of an account where increases are recorded |
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owners' equity |
asset - liabilities |
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in a double-entry accounting system, |
a debit entry is recorded on the left side of a T-account |
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An attorney performs services of $1,100 for a client and receives $400 cash with the remainder on account. The journal entry for this transaction would |
debit Cash, debit Accounts Receivable, credit Service Revenue. |
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the basic summary device of accounting is the |
account. |
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Account Payable had a normal beginning balance of $1,200. During the period, there were debit postings of $600 and credit postings of $800. What was the ending balance? |
$1,400 credit |
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Receiving cash from a customer on account will |
have no effect on total assets. |
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entry for that account |
supplies Accounts Payable Cash |
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Which statement is false? |
Dividends are increased by credits. |
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The error of posting $50 as $500 can be detected by |
dividing the out-of-balance amount by 9. |
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Performing a service on account will |
Increase stockholders' equity increase total assets both a and b |
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The list of all accounts with their balances is the |
trial balance |
