Accounting 1 Part 1 Test Review

Front

A transaction recorded in a journal is not considered a permanent record.

Back

False

Front

A balance sheet reports financial information for a period of time.

Back

False

Front

The source document for an electronic funds transfer is a memorandum.

Back

True

Front

The drawing account is a permanent account.

Back

False

Front

A transaction for the sale of goods or services results in a decrease in owner's equity.

Back

False

Front

The formula for calculating net income is total revenue minus total expenses.

Back

True

Front

If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.

Back

True

Front

Adjusting entries must be posted to the general ledger accounts.

Back

True

Front

Temporary accounts are used to accumulate information until it is transferred to the owner's capital account.

Back

True

Front

On a work sheet, the balance of the owner's drawing account is extended to the

Back

Balance Sheet Debit column