The Recording Process

According to the textbook, which of the following is NOT one of the three basic steps in the recording process?

What is the normal balance for an asset account, and what is the normal balance for a liability account?

Which of the following accounts normally show a credit balance?

In the transaction analysis for Pioneer Advertising, the company paid $600 for a one-year insurance policy. How was this transaction recorded in the journal?

What is the primary purpose of a trial balance?

A compound entry in a journal is an entry that:

What is the correct sequence of steps in the recording process?

The entire group of accounts maintained by a company is collectively referred to as the:

If a company purchases office equipment for $5,000 by signing a 3-month, 12 percent, $5,000 note payable, what is the correct journal entry?

A trial balance will not balance if:

In the general journal for Pioneer Advertising (Illustration 2-29), what type of entry is the one dated October 1 for the purchase of equipment?

Which account is an example of a contra asset account?

If a company receives a $1,200 cash advance from a client for services to be performed later, how should this be recorded?

The debit and credit rules for revenue accounts are the same as the rules for which other type of account?

What is the purpose of the 'Ref.' column in the general journal?

In the trial balance for Pioneer Advertising shown in Illustration 2-31, what is the total amount of expenses listed?

A T-account is an accounting record that consists of a title, a debit side, and a credit side. What does the 'T' in T-account represent?

If a company has a Cash account with a beginning debit balance of $600, debits of $2,280, and credits of $492, what is the ending balance?

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

According to Illustration 2-31, the trial balance for Pioneer Advertising on October 31, what is the total of the credit column?

If a company has an error in its trial balance that is divisible by 9, what is the likely cause?

Which of the following is an advantage of using a journal in the recording process?

The three-column form of account differs from the standard T-account because it includes which additional column?

If a company performs services for a client on account, what is the effect on the accounting equation?

According to the chart of accounts for Pioneer Advertising in Illustration 2-18, which account number would be used for Accounts Payable?

When a company pays a creditor on account, what is the journal entry?

An account that would be increased by a debit is:

On October 31, Pioneer Advertising received $10,000 cash for advertising services performed in October. What is the correct journal entry to record this transaction?

If a company purchases supplies on account, what is the effect on the accounts?

What is the normal balance of the Unearned Service Revenue account?

Pioneer Advertising's trial balance on October 31 (Illustration 2-31) shows a balance of $5,000 in the Notes Payable account. What is the normal balance for this account?

The final step in the recording process is to:

A check mark in the reference column of a journal indicates that:

The double-entry system requires that each transaction must affect:

An owner withdrawal of cash from the business for personal use should be recorded as:

If a company pays employee salaries of $4,000 in cash, what is the effect on the accounts?

What is the correct order of accounts in a ledger and on a trial balance?

If a trial balance has total debits of $28,700 and total credits of $27,800, what is the difference and which column is likely understated?

The journal is referred to as the book of original entry because:

Which of the following is an example of a business document that provides evidence of a transaction?

What is the primary function of a chart of accounts?

If a company pays $900 cash for the current month's rent, which accounts are affected?

An account will have a debit balance if:

The normal balance for the Owner's Drawings account is a debit. Why?

A list of all accounts and their balances at a given time is called a(n):

In what order are accounts arranged in the ledger?

A company debits an asset account for $1,200 and credits a liability account for $800. What else must be done to complete the journal entry?

Which of the following would NOT be detected by a trial balance?

If the owner of a company invests an additional $10,000 cash into the business, the journal entry is:

An expense account has what type of normal balance?