ch 4 of terrible ACCt 1301 Exam #1 Questions with Correct Answers
A series of steps performed during each accounting period to classify, record, and
summarize data for a business and to produce needed financial information is
called the ___ ____ - ✔✔Accounting cycle
Business transactions are recorded in a________.which is a diary of business
activities. - ✔✔Journal
A financial record for entering all types of business transactions is called the -
✔✔General journal
Which of the following are correct statements about the process of journalizing in
the general journal:
the credit is recorded on the first line of the entry
the account that is being credited should be slightly indented within the
description column
the description should refer to the source of the information
the date should be entered in a MM/DD/YYYY format
the date should be recorded in the Post Ref. Column - ✔✔the account that is
being credited should be slightly indented within the description column
the description should refer to the source of the information
Louis Guzman invested $10,000 into his company. This transaction would be
recorded by the company with which of the following entries? - ✔✔debit to Cash
for $10,000
credit to Louis Guzman, Capital for $10,000
, A series of steps performed during each accounting period to classify, record, and
summarize data for a business and to produce needed financial information is
called - ✔✔the accounting cycle
Match the correct order to the appropriate step of analyzing a business
transaction: - ✔✔Step 1
Analyze the financial event
Step 2
Apply the rules of debit and credit
Step 3
Make the entry in T-account form to help analyze the transaction (optional)
Step 4
Record the complete entry in general journal form
A record of original entry where business transactions are recorded is called a -
✔✔journal
A _____ is financial record used for entering all types of business transactions. -
✔✔general journal
Guzman Consulting Services issued a check for $2,000 to purchase equipment.
This transaction would be recorded with which of the following entries? -
✔✔debit to Equipment for $2,000
credit to Cash for $2,000
A series of steps performed during each accounting period to classify, record, and
summarize data for a business and to produce needed financial information is
called the ___ ____ - ✔✔Accounting cycle
Business transactions are recorded in a________.which is a diary of business
activities. - ✔✔Journal
A financial record for entering all types of business transactions is called the -
✔✔General journal
Which of the following are correct statements about the process of journalizing in
the general journal:
the credit is recorded on the first line of the entry
the account that is being credited should be slightly indented within the
description column
the description should refer to the source of the information
the date should be entered in a MM/DD/YYYY format
the date should be recorded in the Post Ref. Column - ✔✔the account that is
being credited should be slightly indented within the description column
the description should refer to the source of the information
Louis Guzman invested $10,000 into his company. This transaction would be
recorded by the company with which of the following entries? - ✔✔debit to Cash
for $10,000
credit to Louis Guzman, Capital for $10,000
, A series of steps performed during each accounting period to classify, record, and
summarize data for a business and to produce needed financial information is
called - ✔✔the accounting cycle
Match the correct order to the appropriate step of analyzing a business
transaction: - ✔✔Step 1
Analyze the financial event
Step 2
Apply the rules of debit and credit
Step 3
Make the entry in T-account form to help analyze the transaction (optional)
Step 4
Record the complete entry in general journal form
A record of original entry where business transactions are recorded is called a -
✔✔journal
A _____ is financial record used for entering all types of business transactions. -
✔✔general journal
Guzman Consulting Services issued a check for $2,000 to purchase equipment.
This transaction would be recorded with which of the following entries? -
✔✔debit to Equipment for $2,000
credit to Cash for $2,000
