The normal balance in an expense account is a credit.

True False A journal is also referred to as a book of original entry. True False Simple journal entries affect more than three accounts. True False

Journalizing is the process of transferring entries from the General Journal to the ledger accounts. True False

A normal balance is one that is recorded on the side of the account on which decreases to that account are recorded. True False

The date columns in a journal are on the right-hand side of the journal form. True False

Journal entries are recorded in chronological order. True False Copying the number 89 as 98 is called a transposition. True False

Liabilities are the first group of accounts in the General Ledger. True False

Which of the following shows the flow of information from business transactions through the accounting system?

Journal to Ledger to Source Documents to Financial Statements Ledger to Journal to Financial Statements to Source Documents Source Documents to Journal to Ledger to Financial Statements Source Documents to Ledger to Financial Statements to Journal Source Documents to Ledger to Journal to Financial Statements

Which of the following accounts normally has a debit balance? Capital Expense Income Liability All of the above normally have a debit balance

Which of the following errors would cause the trial balance column totals to be unequal? A $75 purchase of office supplies on account was journalized and posted as a $57 debit to Accounts Payable and a $57 credit to Office Supplies. A $200 payment for rent was posted as a $200 debit to Rent Expense and a $200 debit to Cash. A $450 payment for utilities was journalized and posted as a $400 debit to Utilities Expense and a $400 credit to Cash. The receipt of a $100 customer payment on an Account Receivable was overlooked and was not journalized nor posted. All of the above errors would cause the trial balance totals to be unequal.

In posting an entry to record the purchase of office supplies of $235 on account, the debit to Office Supplies was posted as $325 and the credit to Accounts Payable was posted correctly. The difference between the trial balance totals, as a result of this error, will be $0 $45 $90 $180 $325

The process of transferring entries from the journal to the ledger accounts is called closing footing journalizing posting transposing

The difference between the total debits and the total credits in an account is called a debit balance a credit balance the account balance none of the above

Match the terms with the phrases. Accounts Payable Cash Journal Ledger Transposition

A.Book of original, or first, entry B.Asset C.Liability D.Book of final, or secondary, entry E.Type of error