Analyze Transactions

A trial balance is prepared to

• prove that there were no errors made in recording transactions into the journal

• prove that no errors were made in posting to the ledger

• prove that each account balance is correct

• summarize the account balances to help prepare financial statements

The post reference columns are used to trace transactions from the journal to the accounts. What will be posted on the post reference column of (a) the journal and (b) on the account?

• (a) the amount of the debit or credit (b) the journal page number

• (a) the journal page number (b) the date of the transaction

• (a) the journal page number, (b) the account number

• (a) the account number, (b) the journal page number

The posting process will include the transfer of the following information from the journal to the account.

• date, amount (debit or credit)

• date, amount (debit or credit), journal page number

• amount (debit or credit), account number

• date, amount (debit or credit) account number

The process of transferring the journal entries to the accounts is known as

• posting

• updating

• journalizing

• summarizing

Which of the following is true regarding normal balances of accounts?

• All accounts have a normal debit balance.

• The normal balance of all accounts will have either a positive or negative balance.

• Accounts that have a normal debit balance will only have debit entries, never credit entries.

• The normal balance is the side of the account that increases the account

Which of the following group of accounts increase with a credit?

• Capital, revenues, expenses

• Assets, capital, revenues

• Liabilities, capital, revenues

• None of these

Which of the following group of accounts are increased with a debit?

• assets, liabilities, owner’s equity

• assets, drawing, expenses

• assets, revenues, expenses

• assets, liabilities, revenues

The payment for the monthly rent will require the following entry

• Debit Cash and Debit Rent Expense

• Credit Cash and Credit Rent Expense

• Debit Rent Expense and Credit Cash

• Credit Rent Expense and Debit Cash

All of the following accounts are increased with a debit except:

• Unearned Revenues

• Land

• Accounts Receivable

• Cash

In accordance with the debit and credit rules, which of the following is true?

• Debits increase assets.

• Credits increase assets.

• Debits increase both assets and capital.

• Credits increase both assets and liabilities.