Accounting I Fall TEKS Review

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The first step in the posting procedure is writing the

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entry date in the Date column of the account.

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Assets taken out of a business for the personal use of the owner are called

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withdrawals

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The entry to establish a $200.00 petty cash fund is

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debit Petty Cash, $200.00; credit Cash, $200.00.

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If an amount is recorded on the side of a T account that is opposite the normal balance side, the account balance is

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decreased

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On a work sheet, the balance of the owner’s drawing account is extended to the

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Balance Sheet Debit column.

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Information needed to prepare an income statement’s Revenue section is obtained from a work sheet’s Account Title column and

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Income Statement Credit column

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When cash is paid for insurance

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Prepaid Insurance is increased

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All of the following statements about the chart of accounts are true Except:
Assets are listed in order of liquidity.
Liabilities are listed alphabetically.
Assets are listed in the order the accounts are created.
Expenses are listed alphabetically.

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Assets are listed in the order the accounts are created.

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The journal entry to close Income Summary when there is a net income is

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debit Income Summary; credit owner’s capital

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Asset accounts include Cash, Prepaid Insurance, and

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Accounts Receivable