Accounting I Final Review

The difference between the total debits and credits to an account is called a

• trial balance.
• ruling
• balance
• footing.

A credit represents a decrease in

• revenues.
• owner's equity.
• a liability.
• an asset.

An increase in an asset account may be offset by a(n)

• decrease in a liability account.
• increase in owner's equity.
• decrease in owner's equity.
• increase in an expense account.

Asset and expense accounts normally have

• negative balances.
• debit balances.
• credit balances.
• large balances.

The person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate may be referred to as a(n)

• bookkeeper.
• information processor.
• accountant.
• internal auditor.

A corporation is usually managed by

• stockholders.
• a proprietor.
• a professional manager.
• two or more partners.

Posting from the journal to the ledger does NOT involve which of the following steps?

• Enter the date of each transaction in the accounts.
• Enter the amount of each transaction in the accounts.
• Enter the page of the journal from which each transaction is posted in the accounts.
• Enter the description of the entry.

Instead of T accounts, businesses are more likely to use a

• chart of accounts.
• balance sheet.
• four-column account.
• general journal.

Corrections in accounts should NOT be

• traceable.
• initialed.
• ruled.
• covered completely.

The payment of a telephone bill for the month would include

• debiting Capital and crediting Accounts Payable.
• debiting Cash and crediting Telephone Expense.
• debiting Telephone Expense and crediting Accounts Payable.
• debiting Telephone Expense and crediting Cash.