ABM - Test 1

What is the post reference column on the account form used for?

• To record the date
• To record the page number
• To record the account number
• we don't use it

You are recording info in the ledger.  You are posting a debit to an account that already has a debit balance.  What do you do?

• add
• subtract
• just move the number

Debit balance of $100. Making an entry of a $50 credit.  What's the new balance?

• Credit of $50
• Debit of $50
• Credit of $100

Credit balance of $100.  Credit entry of $100.  what's the balance

• 0
• credit of 100
• credit of 200

John Smith invested 15,000. How would you record it in the General Journal? 

• John Smith Capital (DR)
  Cash (CR)
   
• Cash (DR)
  John Smith, Capital (CR)

Paid Cash for water bill

• Cash (DR)
  Water bill (CR)
• Water Bill (CR)
  Cash (CR)
• Utilities Expense (DR)
  Cash (CR)
• Both are debits

Paid cash for supplies.

• Cash (DR)
  Supplies (CR)
• Supplies (DR)
  Cash (CR)
• Supplies (DR)
  Accounts Payable(CR)
• They are both debits

Posting is the process of transferring information from the journal to the ledger accounts.

• True
• False

Every journal entry requires a posting to at least two accounts.

• True
• False

If the total debits and total credits of the trial balance do not agree, the first step in locating the error is to:

• re-add the debit and credit columns
• find the amount you are out of balance
• make certain you copied the amount correctly from the ledger account to the trial balance
• divide the amount you are out of balance by 2