Journalizing transaction - Study guides, Class notes & Summaries

What determines a company's use of the specific identification method of costing? A : when the company purchases a large number of low-unit-cost items B : when the company sells large numbers of low-unit-cost items C : when the company sells a limited number of high-unit-cost items D : when the physical flow of units cannot be determined - answer-C ________ is located on the balance sheet as a current asset immediately below receivables. A : Cost Of Goods Sold B : Gross Profit ...

CHAPTER 2 THE RECORDING PROCESS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 1 K 17. 2 K 25. 3 K 33. 2 K 2. 1 K 10. 1 K 18. 2 K 26. 3 C 34. 3 K 3. 1 K 11. 1 K 19. 2 K 27. 3 K 35. 3 C 4. 1 K 12. 1 K 20. 2 K 28. 3 K 36. 4 K 5. 1 K 13. 1 K 21. 2 K 29. 3 K 37. 4 K 6. 1 K 14. 1 K 22. 2 K 30. 4 K 7. 1 K 15. 2 K 23. 2 K 31. 1 K 8. 1 K 16. 2 K 24. 2 K 32. 1 K Multiple Choice Questio...

Accounting 101 Final Study guide Latest Update 2024 Already Passed Know the 3 forms of business entities - Answers Sole proprietorship- A single owner Partnership- has two or more parties as co-owners each is an owner Corporation- Owned by stockholders, or shareholders, who own stock representing share of ownership in the corporation. Definition of Revenues - Answers Increase in retained earnings from delivering goods or services to customers or clients. Definition of Expenses - Answers De...

A device for recording the changes (increases or decreases) in the fundamental accounting elements. Account The process involved in journalizing, posting to the ledger, taking a trial balance, preparing statements, making adjusting and closing entires, and preparing a post-closing trial balance. Accounting cycle Which of the following terms is defined as an unwritten promise by a customer to pay, at a later date, goods sold or services rendered? Accounts receivable Entries made at the conc...

Principles of Accounting PJSO Test Questions And Answers What must an accountant record when journalizing a transaction? - ANSWER- Description of the transaction What does double-entry accounting refer to? - ANSWER- Recording equal debits and credits for each transaction What are the key components of every double-entry accounting record? - ANSWER- At least one debit entry and at least one credit entry What is a characteristic of an asset account? - ANSWER- Increases with a debit...

Financial Accounting Test 1 Exam Questions And Answers 2024 A business entity is an individual, association, or organization with control over economic resources and which engages in economic activities. -correct answer-T Liabilities represent an "inside" interest in a business. -correct answer-F The accounting equation shows the relationship among the three basic accounting elements--assets, revenues, and owner's equity. -correct answer-F If owner's equity and liabilities increase...

TEST BANK FOR ACCOUNTING PRINCIPLES, VOLUME 1, 8TH CANADIAN EDITION JERRY J. WEYGANDT, DONALD E. KIESO, PAUL D. KIMMEL, BARBARA TRENHOLM, VALERIE WARREN, LORI NOVAK CHAPTER 2 THE RECORDING PROCESS CHAPTER LEARNING OBJECTIVES 1. Describe how accounts, debits, and credits are used to record business transactions. Debit means left and credit means right. The normal balance of an asset is a debit because assets are on the left side of the accounting equation. Assets are increased by debits and d...

expanded accounting equations - Correct Answer assets= liabilities + se Stockholder equity= cs + re Re= revenues - expensnes - dividends Summary of account normal balances - Correct Answer Assets are increased with a debit. • Liabilities and equities are increased with a credit. • Revenues (a part of equity) are increased with a credit. • Expenses (which decrease equity) are increased with a debit. • Dividends (which decrease equity) are increased with a debit. What is a tri...

Chapter 03 1. Which of the following is/are not true about a proper journal entry? a. An explanation is needed immediately after each debit and immediately after each credit. b. All credits are indented. c. A debit is never indented, even if a liability or owner's equity account is involved. d. All debits are listed before the first credit. e. In a compound entry, the largest amounts are listed first. ANSWER: POINTS: DIFFICULTY: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARD...

Accounting Information System - ANSWERScollects and processes transaction data and then disseminates the financial information to interested parties An accounting system may be either - ANSWERSmanual or computerized Principles for efficient and effective accounting - ANSWERS1. cost-effectiveness 2. usefulness 3. flexibility general ledger accounting systems - ANSWERSsoftware programs that integrate the various accounting functions related to sales, purchases, receivables, payables, c...