ACCOUNTING PRINCIPLES {ACCT 201},A+ IS
GURANTEED
The accounting process begins with -Answer analysis of business transactions and events
Which of the following list of events properly reflects the early steps taken in the accounting process? -
Answer Analyze each transaction, record relevant transaction, post journal information to ledger
accounts, prepare and analyze the trail balance
Sales invoice -Answer is used by sellers for recording purposes
Source documents include all of the following except: sales tickets, ledgers, checks, purchase orders,
bank statements -Answer ledgers
Source documents -Answer are the sources of accounting information
Various types of documents and other papers that companies use when they conduct their business: are
called source documents, can include sales tickets, and are the source of information for recording
accounting entries, can be in electronic form -Answer all of the above
For what reason do most sellers require customers to have their receipts in order to exchange or return
purchase items -Answer sellers wish to ensure that the sale in question was rung up on the register in
the first place
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a -
Answer account
An account used to record the owner's investments in the business is called -Answer common stock
, The account used to record the transfers of assets from a business to its stockholders is -Answer the
retained earnings account
Unearned revenues are -Answer liabilities created when a customer pays in advance for products or
services before the revenue is earned
Prepaid expenses are -Answer assets that represent prepayments of future expenses
A written promise to pay a definite sum of money on a specific future date is -Answer note payable
A collection of all accounts used by a business is called a -Answer ledger
A ledger is -Answer a record containing increases and decreases in a specific asset, liability, equity,
revenue, or expense item
A list of all accounts used by a company and the identification number assigned to each account is a -
Answer chart of accounts
The general ledger of a business -Answer is a collection of all accounts used in a company's information
system
The account balance -Answer the difference between the total debits and total credits for an account
including the beginning balance
Of the following accounts, the one that normally has a credit balance -Answer sales salaries payable
A debit is used to record -Answer a decrease in the balance of retained earnings
A credit entry -Answer decreases asset and expense accounts and increases liability, common stock and
revenue accounts
GURANTEED
The accounting process begins with -Answer analysis of business transactions and events
Which of the following list of events properly reflects the early steps taken in the accounting process? -
Answer Analyze each transaction, record relevant transaction, post journal information to ledger
accounts, prepare and analyze the trail balance
Sales invoice -Answer is used by sellers for recording purposes
Source documents include all of the following except: sales tickets, ledgers, checks, purchase orders,
bank statements -Answer ledgers
Source documents -Answer are the sources of accounting information
Various types of documents and other papers that companies use when they conduct their business: are
called source documents, can include sales tickets, and are the source of information for recording
accounting entries, can be in electronic form -Answer all of the above
For what reason do most sellers require customers to have their receipts in order to exchange or return
purchase items -Answer sellers wish to ensure that the sale in question was rung up on the register in
the first place
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a -
Answer account
An account used to record the owner's investments in the business is called -Answer common stock
, The account used to record the transfers of assets from a business to its stockholders is -Answer the
retained earnings account
Unearned revenues are -Answer liabilities created when a customer pays in advance for products or
services before the revenue is earned
Prepaid expenses are -Answer assets that represent prepayments of future expenses
A written promise to pay a definite sum of money on a specific future date is -Answer note payable
A collection of all accounts used by a business is called a -Answer ledger
A ledger is -Answer a record containing increases and decreases in a specific asset, liability, equity,
revenue, or expense item
A list of all accounts used by a company and the identification number assigned to each account is a -
Answer chart of accounts
The general ledger of a business -Answer is a collection of all accounts used in a company's information
system
The account balance -Answer the difference between the total debits and total credits for an account
including the beginning balance
Of the following accounts, the one that normally has a credit balance -Answer sales salaries payable
A debit is used to record -Answer a decrease in the balance of retained earnings
A credit entry -Answer decreases asset and expense accounts and increases liability, common stock and
revenue accounts
