Accounting Recording Process Quiz

What is the record called that shows the increases and decreases for each Financial Statement item?

• Chart of accounts

• Journal

• Account

• Ledger

Which of the following is an example of an asset?

• Accounts payable

• Wages expense

• Rent revenue

• Buildings

What is the normal balance for the Fees Earned account?

• None of the above

• Debit

• Credit

• Both debit and credit

What is the process of transferring the debits and credits from the journal entries to the accounts called?

• Trial balance

• Posting

• Journalizing

• Transaction analysis

What is prepared at the end of each accounting period to prove the equality of debits and credits in the ledger?

• Trial balance

• Balance sheet

• Cash flow statement

• Income statement

Which of the following errors would cause the trial balance totals to be unequal?

• A withdrawal of RM6,000 by the owner was recorded as a debit to Office Salaries Expense and a credit to Cash.

• A payment of RM3,500 to a creditor was posted as a debit of RM3,500 to Accounts Payable and a debit of RM3,500 to Cash.

• A fee of RM2,850 earned from a client was debited to Accounts Receivable for RM2,580 and credited to Fees Earned for RM2,850.

• Utilities Expense of RM4,500 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Accounts Payable.

What is the entry to correct the error where a withdrawal of RM6,000 by the owner was recorded as a debit to Office Salaries Expense and a credit to Cash?

• Debit Owner's Equity, credit Office Salaries Expense

• Debit Office Salaries Expense, credit Owner's Equity

• Debit Owner's Equity, credit Cash

• Debit Cash, credit Owner's Equity

What is the process of recording a transaction in the journal called?

• Posting

• Transaction analysis

• Journalizing

• Trial balance

What is the account called that represents the amount of withdrawals made by the owner?

• Drawing account

• Accounts payable

• Supplies

• Owner's equity

What is the list of the accounts in the ledger called?

• Chart of accounts

• Journal

• Ledger

• Trial balance