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. - Answer True
The capital account is an owner's equity account. - Answer True
An accounting device used to analyze transactions ...
Accounting Final Exam Review
Questions & Complete Answers.
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. - Answer True
The capital account is an owner's equity account. - Answer True
An accounting device used to analyze transactions is a T account. - Answer True
When cash is paid for supplies, the supplies account is increased by a debit. - Answer True
Increases in expense accounts are recorded as debits because they decrease the owner's capital
accounts. - Answer True
Increases in revenue accounts are recorded as debits because they increase the owner's capital
accounts. - Answer False. Increases in revenue accounts are recorded as credits.
Accounts payable accounts are increased with a debit. - Answer False. Accounts payable accounts are
increased with a credit because they are liabilities.
Increases in drawing accounts are recorded as credits. - Answer False. Increases in drawing accounts
are recorded as debits.
Source document ordering bank to pay cash from a bank account. - Answer Check
Source document that describes goods or services sold, quantity, and price. - Answer Invoice
, Source document used to record a sale on account. - Answer Sales Invoice
Source document giving written acknowledgement for cash received. - Answer Receipt
Source document on which a brief message is written describing a transaction. - Answer Memorandum
A transaction recorded in a journal is not considered a permanent record. - Answer 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. - Answer True
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping
current records is posting. - Answer False. It is file maintenance.
The day of the month is written on each journal page only for the first entry. - Answer False. It is
written for every entry.
A journal page is proved by verifying that the total debits equals the total credits. - Answer True
Posting is transferring information from a journal entry to a ledger account. - Answer True
If the previous account balance and the current entry posted to an account are both debits, the new
account balance is a debit. - Answer True.
The total of the General Credit column is not posted. - Answer True
A ledger that contains all accounts needed to prepare financial statements is a general ledger. - Answer
True
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