Accounting I - 2

The accounting cycle begins by recording _____________ in the form of journal entries.

• A. financial transaction

• B. financial information

• C. corporate minutes

• D. business contracts

After a business transaction has occurred, journal entries are recorded in the

• ledger

• journal

• balance sheet

• trial balance

Transactions are recorded in a journal in chronological order.

• True

• False

Which of the following is not part of the accounting process?

• Recording

• Identifying

• Financial decision making

• Communicating

Keeping a systematic, chronological diary of events that are measured in monetary and units is called

• communicating.

• identifying.

• processing.

• recording.

The left side of an account is

• blank.

• a description of the account.

• the debit side.

• the balance of the account.

The final step in the recording process is to

• analyze each transaction.

• enter the transaction in a journal.

• prepare a trial balance

• transfer journal information to ledger accounts

The usual sequence of steps in the transaction recording process is:

• journal - analyze - ledger.

• analyze- journal - ledger.

• journal -ledger -analyze.

• ledger - journal - analyze.

The procedure of transferring journal entries to the ledger accounts is called

• journalizing.

• analyzing.

• reporting.

• posting.

The first step in the recording process is to

• prepare financial statements.

• analyze each transaction for its effect on the accounts.

• post to a journal.

• prepare a trial balance.