an individual audit document of rises and decreases in certain asset, licapability, stockholders" equity, revenue, or price items

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the mechanism of collecting and processing transaction data and also communicating financial information to decision makers
events that require recording in the financial statements bereason they influence assets, liabilities, or stockholders equity
1. The effects on the basis bookkeeping equation of performing solutions for cash are to:a. Increase assets and also decrease stockholders equityb. Increase assets and also increase stockholders equityc. Increase assets and rise liabilitiesd. Increase liabilities and boost stockholders equity
2. Genesis Company buys a $900 machine on crmodify. This transaction will affect her:a. Income statement onlyb. Balance sheet onlyc. Income statement and also retained earnings statement onlyd. Income statement, retained earnings statement, and balance sheet
3. Which of the following occasions is not recorded in the audit records?a. Equipment is purchased on accountb. An employee is terminatedc. A cash investment is made right into the businessd. Company kind of pays dividfinish to stockholders
5. Which statement around an account is true?a. In its simplest create, an account is composed of 2 partsb. An account is an individual bookkeeping record of increases and decreases in specific ascollection, licapability, and also stockholders" equity items.c. Tright here are separate accounts for certain assets and liabilities however only one account for stock holders" equity itemsd. The left side of an account is the credit, or decrease, side
b. An account is an individual bookkeeping document of increases and also decreases in particular ascollection, liability, and stockholders" equity items.
6. Debits:a. Increase both assets and also liabilitiesb. Decrease both assets and also liabilitiesc. Increase assets and also decrease liabilitiesd. Decrease assets and also increase liabilities
7. A revenue account:a. Is increased by debitsb. Is lessened by creditsc. Has a normal balance of a debitd. Is boosted by credits
8. Which accounts usually have debit balances?a. Assets, expenses, and also revenuesb. Assets, expenses, and also kept earningsc. Assets, liabilities, and also dividendsd. Assets, dividends, and expenses
9. Paying an account payable via cash affects the components of the accounting equation in the adhering to way:a. Decreases stockholders" equity and decreases liabilitiesb. Increases assets and decreases liabilitiesc. Decreases assets and also increases stockholders equityd. Decreases assets and also decreases liabilities
10. Which is not part of the recording process?a. Assessing transactionsb. Preparing an earnings statementc. Entering transactions in a journald. Posting journal entries
11. Which of these statements about a journal is false?a. It consists of only revenue and also price accountsb. It provides a chronological document of transactionsc. It helps to situate errors because the delittle bit and credit amounts for each entry deserve to be conveniently comparedd. It discloses in one place the finish result of a transaction
12. A ledger:a. Contains only asset and licapacity accountsb. Should display accounts in alphabetical orderc. Is a arsenal of the whole team of accounts maintained by a companyd. Provides a chronological record of transactions
13. Posting:a. Generally occurs before journalizingb. Transfers ledger transactivity data to the journalc. Is an optional action in the recording processd. Transfers journal entries to ledger accounts
14. A trial balance:a. Is a list of accounts through their balances at a provided timeb. Proves that proper account titles were usedc. Will not balance if a correct journal enattempt is posted twiced. Proves that all transactions have actually been recorded
15. A trial balance will not balance if:a. A correct journal enattempt is posted twiceb. The purchase of provides on account is debited to offers and also attributed to cashc. A $100 cash dividfinish is debited to Dividends for $1,000 and credited to Cash for $100d. A $450 payment on account is debited to Accounts Payable for $45 and also credited to Cash for $45
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