Final Exam Review Accounting I

Front

A transaction recorded in a journal is not considered a permanent record.

Back

False

Front

Temporary accounts are used to accumulate information until it is transferred to the owner’s capital account

Back

True

Front

A balance sheet reports financial information for a period of time.

Back

False

Front

Adjusting entries must be posted to the general ledger accounts.

Back

True

Front

The source document for an electronic funds transfer is a memorandum

Back

True

Front

If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.

Back

True

Front

The drawing account is a permanent account.

Back

False

Front

The formula for calculating net income is total revenue minus total expenses.

Back

True

Front

A transaction for the sale of goods or services results in a decrease in owner’s equity.

Back

False

Front

If an error is recorded in a journal entry, what should be done? Options: cancel the error by drawing a neat line through the error., correct the entry by writing the correct item above the canceled error., do not erase the incorrect item.

Back

all of the above