Pertemuan 3 dan 4

A trial balance

• proves that debits and credits are equal in the ledger.

• supplies a listing of open accounts and their balances that are used in preparing financial statements.

• is normally prepared three times in the accounting cycle.

• all of these.

Which of the following is a nominal (temporary) account?

• Unearned Revenue

• Salary Expense

• Inventory

• Retained Earnings

The double-entry accounting system means

• Each transaction is recorded with two journal entries.

• Each item is recorded in a journal entry, then in a general ledger account.

• The dual effect of each transaction is recorded with a debit and a credit.

• More than one of the above.

When a corporation pays a note payable and interest,

• the account notes payable will be increased.

• the account interest expense will be decreased.

• they will debit notes payable and interest expense.

• they will debit cash.

Stockholders’ equity is not affected by all

• cash receipts.

• dividends.

• revenues.

• expenses.

The accounting equation must remain in balance

• throughout each step in the accounting cycle.

• only when journal entries are recorded.

• only at the time the trial balance is prepared.

• only when formal financial statements are prepared.

The difference between the accounting process and the accounting cycle is

• the accounting process results in the preparation of financial statements, whereas the accounting cycle is concerned with recording business transactions.

• the accounting cycle represents the steps taken to accomplish the accounting process.

• the accounting process represents the steps taken to accomplish the accounting cycle.

• merely semantic, because both concepts refer to the same thing.

An optional step in the accounting cycle is the preparation of

• adjusting entries.

• closing entries.

• a statement of cash flows.

• a post-closing trial balance.

A general journal

• chronologically lists transactions and other events, expressed in terms of debits and credits.

• contains one record for each of the asset, liability, stockholders’ equity, revenue, and expense accounts.

• lists all the increases and decreases in each account in one place.

• contains only adjusting entries.

A journal entry to record the sale of inventory on account will include a

• debit to inventory.

• debit to accounts receivable.

• debit to sales.

• credit to cost of goods sold.