Question 1

1. A chart of accounts is used in organizations to

   		process transactions to the ledger.
   		ensure consistency in recording transactions quicker, since a chart of accounts is essentially shorthand of accounts.
   		verify correct amounts before being transferred to the trial balance.
   		alphabetize accounts so that when accountants prepare financial statements the accounts can be quickly transferred.
   		encrypt the general journal so that no other organization can read any other organization's journal.

1 points

Question 2

1. The entry to close revenue accounts involves

   		a debit to Income Summary and credits to all the revenue accounts.
   		debits to all the expense accounts and credits to all the revenue accounts.
   		a debit to Income Summary and a credit to Retained Earnings.
   		a debit to Retained Earnings and a credit to Income Summary.
   		debits to all the revenue accounts and a credit to Income Summary.

1 points

Question 3

1. Caldwell Industries purchased $2,000 of merchandise inventory, paying cash for 10% of the purchase, with the remainder on account. The entry would include a

   		debit to Merchandise Inventory for $2,000, credit to Cash for $200, and credit to Accounts Payable for $1,800.
   		debit to Cash for $200, debit to Accounts Payable for $1,800, and credit to Merchandise Inventory for $2,000.
   		debit to Merchandise Inventory for $2,000, credit to Cash for $200, and credit to Notes Payable for $1,800.
   		debit to Merchandise Inventory for $200, and credit to Cash for $200.
   		debit to Cash for $800, debit to Notes Payable for $1,800, and credit to Merchandise Inventory for $2,000.

1 points

Question 4

1. Posting is the process of transferring information from the

   		journal to the ledger.
   		ledger to the income statement and balance sheet.
   		journal to the balance sheet.
   		income statement to the balance sheet.
   		ledger to the journal.