Mid-year Accounting Review

If an error is recorded in a journal entry,

• cancel the error by drawing a neat line through the error.

• correct the entry by writing the correct item above the canceled error.

• do not erase the incorrect item.

• all of these.

The first step in the posting procedure is writing the

• entry date in the Date column of the account.

• journal page number in the Post. Ref. column of the journal.

• account number in the Post. Ref. column of the account.

• entry amount in the Debit or Credit column of the account.

Income Summary is a(n)

• asset account.

• liability account.

• temporary account.

• permanent account.

Assets taken out of a business for the personal use of the owner are called

• net income.

• net loss.

• investments.

• withdrawals.

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

• increased.

• descreased.

• unaffected.

• correct.

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

• Income Statement Debit column.

• Income Statement Credit column.

• Balance Sheet Debit column.

• Balance Sheet Credit column.

When cash is paid for insurance,

• Prepaid Insurance is decreased.

• Prepaid Insurance is credited.

• Prepaid Insurance is increased.

• none of these.

The normal balance side of any expense account is

• the debit side.

• the credit side.

• the right side.

• either the debit side or credit side.

Asset accounts include Cash, Prepaid Insurance, and

• Accounts Payable.

• Accounts Receivable.

• Sales.

• Utilities Expense.

The first digit in the account number 410 means that the account is in the

• Assets division of the general ledger.

• Liabilities division of the general ledger.

• Revenue division of the general ledger.

• Expenses division of the general ledger.