Chapter 3 : Accounting Cycle

The final step in the recording process is to

• enter the transaction in a journal.

• prepare a trial balance

• transfer journal information to ledger accounts

• analyze each transaction.

The left side of an account is

• the debit side.

• a description of the account.

• the balance of the account.

• receipt from customer

Phast Mail Service purchased equipment for $2,000. Phast paid $500 in cash and signed a note for the balance. Phast debited the Equipment account, credited Cash and

• nothing further must be done.

• credited another asset account for $500.

• debited the Capital account for $1,500.

• credited a liability account for $1,500.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

• bill

• advertising brochure.

• cash register sales tape.

• check

On January 14, Mafro Industries purchased supplies of $800 on account. The entry to record the purchase will include

• a debit to Accounts Receivable and a credit to Supplies.

• a debit to Supplies and a credit to Cash

• a debit to Supplies and a credit to Accounts Payable.

• a debit to Supplies Expense and a credit to Accounts Receivable.

The usual sequence of steps in the transaction recording process is:

• analyze- journal - ledger.

• journal - analyze - ledger.

• journal -ledger -analyze.

• ledger - journal - analyze.

The recording process occurs

• once a month.

• once a year.

• infrequently in a manual accounting system

• repeatedly during the accounting period.

The procedure of transferring journal entries to the ledger accounts is called

• analyzing

• posting

• reporting

• journalizing

An account is a part of the financial information system and is described by all except which one of the following?

• An account may be part of a manual or a computerized accounting system

• An account has a debit and credit side.

• An account is a source document

• An account has a title

A trial balance is a listing of

• general ledger accounts and balances

• transactions in a journal

• the chart of accounts

• the totals from the journal pages