Page 11 21. The best place to look in a company's accounting system, if you wanted to see all of the accounts tlected by a transaction, would be? The General Journal B. The General Ledger C. A Trial Balance D. The Chart of Accounts E. None of the above 22. If a joumal entry that affects only two accounts increases an asset as one part of the entry, what might the other part of the entry do? A. Increase another asset account B. Increase an expense account C. Increase a liability account D. Decrease a revenue account E. None of the above 23. Which of the following is True? A, The Balance Sheet covers a period of time-the Income Statement reports on a pont n time B The Income Statement covers a period of time - the Balance Sheet reports on a point in time C. The Income Statement and the Balance Sheet cover a period of time X D. The Income Statement and the Balance Sheet report on a point in time x E. None of the above 24. Which of the following statements is True? A. The normal balance for the Cost of Goods Sold account is a Credit, X B. The Retained Earnings account will ahways start the accounting period with a zero balance. C. When you Debit an expense account you can say that you increased the expense account and decreased owners' equity D. The normal balance for the Retained Eamings account is a Debit. E. Retained Earmings is the amount of Cash available to pay a dividend 25. If an adjusting entry to record interest, which is owed to a bank on a Note Payable, is not recorded at month-end, which of the following effects on the financial statements for the month will NOT occur? A. Total expenses will be understated on the income statement. B. Net income will be overstated. C. Liabilities on the balance sheet ill be understated D. Cash will be overstated. E. Retained Earnings will be overstated. The Retained Earnings account of a company had a Credit balance before closing the Revenue and Expense accounts. After closing the Revenue and Expense accounts the Retained Eamings account had a Debit balance. The company did not declare or pay any dividends during this accounting period. Based on this information it can be determined that the company incurred a loss for the period. 26. A. True B. False C. Not adequate facts to determine True or False