Accounting Semester Exam with complete solutions

Accounting Semester Exam with
complete solutions
businesses use accounts to summarize all the information pertaining to a single item - ANSWER-true



a drawing account is increased by debits and decreased by credits - ANSWER-true



increases in revenue accounts are recorded as debits because they increase the owner's capital account -
ANSWER-false



each liability has a normal debit balance - ANSWER-false



increases in expense accounts are recorded as credits because they increase the owner's capital account
- ANSWER-false



a group of accounts is called a ledge - ANSWER-true



errors discovered after an entry is posted may be corrected by ruling through an item - ANSWER-false



a check mark in the PostRef column of the journal indicates that the amounts on that line are not posted
individually - ANSWER-true



income summary has a normal credit balance - ANSWER-true



the ending account balances of temporary accounts for one fiscal period are the beginning account
balances for the next fiscal period - ANSWER-false



the balances of assets accounts must be reduced to zero to prepare the accounts for the next period -
ANSWER-false