20A1 - Intermediate Acc. - Review on Accounting Process

Which of the following statement about an account is true?

• The right side of an account is the debit, or increase side.

• An account is an individual accounting record of increases and decreases in specific assets, liability, and stockholders equity items.

• There are separate accounts for specific assets and liabilities but only one account for stockholders’ equity items.

• The left side of an account is the credit, or decrease, side.

Which of the following describes the classification and normal balance of the Unearned Rent Revenue account?

• Asset, debit

• Revenues, credit

• Liability, credit

• Expense, debit

On July 7, 2020, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include:

• a debit to Service Revenue of $1,400.

• a credit to Accounts Receivable of $1,400.

• a debit to Cash of $1,400.

• a credit to Accounts Payable of $1,400.

The primary purpose of the trial balance is to:

• disclose the complete effect of a transaction in one place.

• make sure a journal entry is not posted twice.

• transfer journal entries to the ledger accounts.

• prove the equality of the debit and credit amounts after posting.

At the end of the period, ............ are required to satisfy the realization principle and the matching principle.