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Accounting Final Exam Review Questions & Answers (rated 100% correct).
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Accounting Final Exam ReviewQuestions & Answers (rated 100%
correct).
When financial records for a business and for its owner's personal belongings are not mixed, this is an
application of the Business Entity accounting concept. ANS - True
The capital account is an owner's equity account. ANS - True
An accounting device used to analyze transactions is a T account. ANS - True
When cash is paid for supplies, the supplies account is increased by a debit. ANS - True
Increases in expense accounts are recorded as debits because they decrease the owner's capital
accounts. ANS - True
Increases in revenue accounts are recorded as debits because they increase the owner's capital
accounts. ANS - False. Increases in revenue accounts are recorded as credits.
Accounts payable accounts are increased with a debit. ANS - False. Accounts payable accounts are
increased with a credit because they are liabilities.
Increases in drawing accounts are recorded as credits. ANS - False. Increases in drawing accounts are
recorded as debits.
Examples of source documents include: checks, sales invoices, memorandums, and letters. ANS - False.
Source documents include: check, invoice, sales invoice, receipt, memorandum
Source document ordering bank to pay cash from a bank account. ANS - Check
, Source document that describes goods or services sold, quantity, and price. ANS - Invoice
Source document used to record a sale on account. ANS - Sales Invoice
Source document giving written acknowledgement for cash received. ANS - Receipt
Source document on which a brief message is written describing a transaction. ANS - Memorandum
A transaction recorded in a journal is not considered a permanent record. ANS - False. A transaction
recorded in a journal is considered a permanent record.
A journal amount column headed with an account title is a special amount column. ANS - True
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping
current records is posting. ANS - False. It is file maintenance.
The day of the month is written on each journal page only for the first entry. ANS - False. It is written
for every entry.
A journal page is proved by verifying that the total debits equals the total credits. ANS - True
Posting is transferring information from a journal entry to a ledger account. ANS - True
If the previous account balance and the current entry posted to an account are both debits, the new
account balance is a debit. ANS - True.
The total of the General Credit column is not posted. ANS - True
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