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WorksheetsChapter 2
Total questions: 5
Worksheet time: 3mins
Which of the following statements about an account is true?
The right side of an account is the debit or increase side.
An account is an individual accounting record of increases and decreases in specific asset, liability, and equity items.
There are separate accounts for specific assets and liabilities but only one account for equity items.
The left side of an account is the credit or decrease side.
Which of the following is not part of the recording process?
Analyzing transactions.
Preparing a trial balance.
Entering transactions in a journal.
Posting transactions.
A ledger:
Contains only asset and liability accounts.
Should show accounts in alphabetical order.
Is a collection of the entire group of accounts maintained by a company.
Is a book of original entry.
Posting:
Normally occurs before journalizing.
Transfers ledger transaction data to the journal.
Is an optional step in the recording process.
Transfers journal entries to ledger accounts.
A trial balance will not balance if:
A correct journal entry is posted twice.
The purchase of supplies on account is debited to Supplies and credited to Cash.
A £100 cash dividend is debited to Dividends for £1,000 and credited to Cash for £100.
A £450 payment on account is debited to Accounts Payable for £45 and credited to Cash for £45.
