Accounting I Fall TEKS Review

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.

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

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

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

• net income

• net loss

• investments

• withdrawals

The entry to establish a $200.00 petty cash fund is

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

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

• 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 T account that is opposite the normal balance side, the account balance is

• increased

• decreased

• 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

Information needed to prepare an income statement’s Revenue 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

When cash is paid for insurance

• Prepaid Insurance is decreased

• Prepaid Insurance is credited

• Prepaid Insurance is increased

• none of these

All of the following statements about the chart of accounts are true Except:

• Assets are listed in order of liquidity.

• Liabilities are listed alphabetically

• Assets are listed in the order the accounts are created.

• Expenses are listed alphabetically.

The journal entry to close Income Summary when there is a net income is

• debit Sales; credit Income Summary

• debit owner’s capital; credit Income Summary

• debit Income Summary; credit Sales

• debit Income Summary; credit owner’s capital

Asset accounts include Cash, Prepaid Insurance, and

• Accounts Payable

• Accounts Receivable

• Sales

• Utilities Expense