Accounting: Cycle 1 Review

The usual sequence of steps in the transaction recording process is

• journal --> analyze --> ledger.

• analyze --> journal --> ledger.

• journal --> ledger --> analyze.

• ledger --> journal --> analyze.

The journalizing process occurs

• once a year.

• once a month.

• repeatedly during the accounting period.

• infrequently in a manual accounting system.

A debit is not the normal balance for which of the following?

• Asset account

• Drawings account

• Expense account

• Capital account

A financial statement showing the revenue and expenses for a fiscal period.

• Income Statement
• Balance Sheet
• Work Sheet
• Trial Balance

A proof of the equality of debits and credit in general ledger.

• trial balance
• adjustments
• balance sheet
• work sheet

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

• Balance Sheet Debit column
• Balance Sheet Credit column
• Income Statement Debit column
• Income Statement Credit column

Temporary accounts must start each fiscal period with a zero balance.

• True
• False

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

• True

• False

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

• True

• False

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

• True

• False