1.The process of transferring general journal entry information to the ledger is called:

Balancing an account.

Journalizing

Posting.

Double-entry accounting.Balancing.

2.Which of the following accounts is not included in the liability section of the balance sheet?

Notes payable.

Wages payable.

Taxes payable.

Accounts payable.

Accounts receivable.

3. The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

true

false

4.Net income is sometimes called earnings or profit.

true

false

5.On a trial balance, if the Debit and Credit column totals are equal, then:

Equal debits and credits have been recorded for transactions.

All ledger account balances are correct.

The balance sheet would be correct.

All entries from the journal have been posted to the ledger correctly

All transactions have been recorded correctly.

6.If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Decreased $22,000

.Decreased $156,000.

Increased $22,000.

Increased $89,000.

Increased $156,000.

7.Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements.

true

false