FALL ACCT I EOS

The first step in the posting procedure is to write the journal entry date in the Date column of the account ledger.

• True

• False

When the owner takes cash out (an asset) of the business to use for personal use it is called a

• net income

• net loss

• investment

• withdrawal/drawing

When a petty cash account is established, you debit Petty Cash and credit Cash.

• True

• False

If an amount is recorded on the side that is opposite the normal balance side, the account balance is

• increased

• decreased

• stays the same

When completing a work sheet, the owner's drawing account is extended to the INCOME STATEMENT as a CREDIT.

• True

• False

When completing a work sheet, the owner's drawing account is extended to the BALANCE SHEET as a DEBIT.

• True

• False

The revenue section of the financial statements can be prepared using the which column from the work sheet?

• Income Statement Credit

• Income Statement Debit

• Balance Sheet Credit

• Balance Sheet Debit

When cash is paid to purchase insurance, which account is debited?

• Cash

• Prepaid Insurance

• Insurance Expense

A comparison between two components of financial information is called -

• financial ratio

• monetary policy

• monetary ratio

• percentage of sales

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