Accounting Exam 1-Questions and Answers Graded A+

Accounting Exam 1-Questions and Answers Graded A+ The purpose of a journal is to - ANSWER-record a chronological listing of every transaction for a company. A journal entry should contain which of the following information? - ANSWER--the date -description of the transaction -accounts and amounts credited -accounts and amounts debited Steps for measuring transaction in the correct order. - ANSWER-1. Use a source document to identify accounts affected 2. Analyze the impact of the transaction on the accounting equation 3. Assess whether the transaction results in a debit or credit to account balances 4. Record the transaction in a journal 5. Post the transaction to the general ledger After the accountant analyzes the impact of a transaction on the accounting equation, the next step in the measurement process is to - ANSWER-Determine the accounts to debit and credit Accounts on the left side of the accounting equation (assets) are increased with a _______ to the account, whereas accounts on the right side of the accounting equation are increased with a ______. - ANSWER--debit -credit In a double entry accounting system, the right side of the account is represent by a ____________. - ANSWER-credit Identify three components of retained earnings - ANSWER--revenues -expenses -dividends Match the type of accounting system with the method for posting journal entries. - ANSWER-Computerized system - journal entries are instantly posted to the general ledger. Manual system- journal entries are posted periodically to the general ledger Place the three steps for analyzing the effect of transactions in the correct order. - ANSWER--Determine one account in the accounting equation that will increase or decrease -Determine a second account in the accounting equation that will increase or decrease -Confirm that assets are equal to liabilities plus stockholders' equity