Accounting 1 Final 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 second 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 account.

• 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

An example of a permanent account is

• sales

• insurance expense

• cash

• drawing

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

• net income

• net loss

• investments

• withdrawals

When the owner puts cash into the company it's an

• expense

• investment

• drawing

• cash

The entry to establish a $100.00 petty cash fund is

• debit Petty Cash, $100.00; credit Cash, $100.00.

•  debit Petty Cash, $100.00; credit Miscellaneous Expense, $100.00.

• debit Miscellaneous Expense, $200.00; credit Cash, $200.00.

• debit Cash, $200.00; credit Petty Cash, $200.00.

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

• increased

• decreased

• unaffected

• wrong

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

• (A) Income Statement Debit column.

• Income Statement Credit column.

• Balance Sheet Debit column.

• Balance Sheet Credit column

Information needed to prepare an income statement’s Expense section is obtained from a work sheet’s Account Title column and

• Income Statement Debit column.

• Income Statement Credit column.

• Balance Sheet Debit column.

• Balance Sheet Credit column.