Ch. 1-8 Review

If an error is recorded in a journal entry,

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

•  do not erase the incorrect item.

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

•  all of these.

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

•  increased

•  unaffected

• decreased

• correct

When cash is paid for insurance

• Prepaid Insurance is credited

•  Prepaid Insurance is decreased

• Prepaid Insurance is increased

• none of these

The entry to establish a $200.00 petty cash fund is

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

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

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

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

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

• Balance Sheet Credit column

•  Income Statement Credit column

• Balance Sheet Debit column

The first step in the posting procedure is writing the ___

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

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

• entry date in the Date column of the account

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

Income Summary is a(n) 

• asset account

• temporary account

• permanent account

•  liability account

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

•  Income Statement Credit column

• Balance Sheet Credit column

•  Balance Sheet Debit column

•  Income Statement Debit column

The normal balance side of any expense account is

• the debit side

•  the right side

• the credit side

•  either the debit side or credit side

Asset accounts include Cash, Prepaid Insurance, and

• Accounts Receivable.

• Sales

• Utilities Expense

• Accounts Payable