The Recording Process

Which of the following correctly identifies the normal balances of accounts?

• Assets-Debit

  Liabilities-Credit

  Owner's Equity-Credit

  Revenue-Debit

  Expenses-Credit

• Assets-Debit

  Liabilities-Credit

  Owner's Equity-Credit

  Revenue-Credit

  Expenses-Credit

• Assets-Credit

  Liabilities-Debit

  Owner's Equity-Debit

  Revenue-Credit

  Expenses-Debit

• Assets-Debit

  Liabilities-Credit

  Owner's Equity-Credit

  Revenue-Credit

  Expenses-Debit

A trial balance may balance even when each of the following occurs, except when

Choose one answer.

• a transposition error is made.

• a transaction is not recorded in the journal.

• a journal entry is posted twice.

• incorrect accounts are recorded in the journal for both the debit and the credit entry.

The left​ side of an account is the​ (a)   side.

The right side of an account is the (a)   side.

A trial balance is a listing of account names and balances.

• True

• False

Rosewich Company purchases equipment for $1,400 and supplies for $500 from Farkle Co for $1,900

cash. The entry for this transaction will include a

• debit to Equipment $1,400 and a debit to Supplies Expense $500 for Sanders.

• credit to Cash for Sanders.

• credit to Accounts Payable for Noland.

• debit to Equipment $1,400 and a debit to Supplies (asset) $500 for Noland.

The entire group of accounts maintained by a company is called the​ ​ (a)  

• general ledger

• chart of accounts.

• general journal.

• trial balance.

A journal provides

• the balances for each account.

• a record of transactions in date order.

• information about a transaction in several different places.

• a list of all accounts used in the business.

The first step in designing a computerised accounting system is the creation of the

• general ledger.

• general journal.

• chart of accounts.

• trial balance

A compound journal entry involves _____accounts.

• three or more

• two

• three

• four or more