Accounting is the information system that identifies records and communicates the economic
events of an organization to interested users. True False
Bookkeeping deals with the record-keeping process and is only one aspect of accounting.
True False
Internal users are those who manage the business. True False
The Financial Accounting Standards Board is a private organization that establishes broad
reporting guidelines of general applicability as well as specific accounting rules.
True False
Certified Public Accountants are only permitted to prepare audit reports and tax returns.
True False
The economic entity assumption requires that the activities of the entity be kept separate and
distinct from the activities of its owners and all other economic entities. True False
Collection of account receivable will increase both cash and accounts receivable.
True False
An expense paid with cash would result in an equal decrease in liabilities and owner’s equity.
True False
Liabilities represent the owner ship claim on total assets. True False
Net Income is the excess of revenues over expenses for the accounting period. True
False
Assets are increased by debits and liabilities are decreased by credits. True False
The owner’s capital account is increased by credits True False
An account will have a credit balance if the total debit amounts exceed the total credit amounts.
True False
The ledger is the entire group of accounts and is referred to as the book of original entry.
True False
The basic steps in the recording process are (1) to analyze each transaction, (2) to enter the
transaction in a journal, and (3) to transfer the journal entry to the appropriate ledger accounts.
True False
The procedure of transferring journal entries to the ledger accounts is called posting and should
be performed in chronological order. True False
Assets = Liabilities + owner’s capital - owner’s drawing + revenues – expenses is a correct form
of the expanded basic accounting equation. True False
In posting, one should enter “J2” in the post ref. column on page two of the journal.
True False
When the columns of the trial balance equal each other, it proves no errors occurred in recording
and posting. True False
The double entry system is possible because all business transactions may be expressed in equal
debit and credit entries. True False
All of the following are external users of accounting information except
labor unions
taxing authorities
regulatory agencies
company officers
Recording consists of:
identifying and measuring economic events
preparing and disturbing accounting reports
Keeping a systematic, chronological diary of events measured in dollars and cents.
Identifying measuring, receiving, and communicating economic events to interested users.
Accounting for government, foundations, hospitals, labor unions, colleges/universities, and
charities is part of which broad category within the accounting profession?
Not-for-profit accounting
Management accounting
Public.
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
It is now very easy for accounting students to get detailed and logical solutions to accounting assignments or problems at a very reasonable cost and within a deadline. Our expert accounting tutors delivered excellent accounting help services to you. You 100% sure that we deliver what we promise!
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
It is now very easy for accounting students to get detailed and logical solutions to accounting assignments or problems at a very reasonable cost and within a deadline. Our expert accounting tutors delivered excellent accounting help services to you. You 100% sure that we deliver what we promise!
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
Definition of accounting, what is accounting cycle? And how to record business transactions, it consist on various series which started from journal entries, ledger, and trial balance. key terms of accounting. The Accounting Rules of debit and credit, Debit money, assets and liabilities, Bad Debits, Balance Sheet, Double-entry, bad debts, inventory, Expenses, depreciation , Accumulated Depreciation , types of ledger account, categories of general ledger account, Assets and Liabilities, Owners’ Equity, Revenue Expansion of the Basic Equation and Expense, and examples.
According to the definition of emotional intelligence adopted by the.pdfakashitproduct
According to the definition of emotional intelligence adopted by the textbook authors, how many
abilities are involved with emotional intelligence?
Solution
Four abillites are involved with emotional intelligence. They are;
1. ability to diagnose and recognize emotions
2.ability to control emotions
3. ability to respond appropriately to other emotional cues
4.ability to respond and diagnose emotions displayed by others.
According to NOAAs report, 3 tornadoes struck Massachusetts per ye.pdfakashitproduct
According to NOAA\'s report, 3 tornadoes struck Massachusetts per year between 1961 and
1990, which follows a Poisson distribution. Let T be the time until the occurrence of the fifth
tornado in Massachusetts. Find the probability that T is between 1 and 2 years.
Solution
0.6 = P(A).
More Related Content
Similar to Accounting is the information system that identifies records and com.pdf
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
Definition of accounting, what is accounting cycle? And how to record business transactions, it consist on various series which started from journal entries, ledger, and trial balance. key terms of accounting. The Accounting Rules of debit and credit, Debit money, assets and liabilities, Bad Debits, Balance Sheet, Double-entry, bad debts, inventory, Expenses, depreciation , Accumulated Depreciation , types of ledger account, categories of general ledger account, Assets and Liabilities, Owners’ Equity, Revenue Expansion of the Basic Equation and Expense, and examples.
According to the definition of emotional intelligence adopted by the.pdfakashitproduct
According to the definition of emotional intelligence adopted by the textbook authors, how many
abilities are involved with emotional intelligence?
Solution
Four abillites are involved with emotional intelligence. They are;
1. ability to diagnose and recognize emotions
2.ability to control emotions
3. ability to respond appropriately to other emotional cues
4.ability to respond and diagnose emotions displayed by others.
According to NOAAs report, 3 tornadoes struck Massachusetts per ye.pdfakashitproduct
According to NOAA\'s report, 3 tornadoes struck Massachusetts per year between 1961 and
1990, which follows a Poisson distribution. Let T be the time until the occurrence of the fifth
tornado in Massachusetts. Find the probability that T is between 1 and 2 years.
Solution
0.6 = P(A).
According to Aristotles conception of virtue which of the followin.pdfakashitproduct
According to Aristotle\'s conception of virtue which of the following occupations provides the
best metaphor for a morally virtuous person?
A highly skilled craftsmen
A nun
A naturally talented but unaccomplished pianist
awesome
A highly skilled craftsmen
A nun
A naturally talented but unaccomplished pianist
awesome
Solution
A naturally talented but unaccomplished pianist
option C is correct.
According to Census data, in 1950 the population of the US amounted .pdfakashitproduct
According to Census data, in 1950 the population of the US amounted to 151.3 millions persons,
and 13.4% of them were living in the West. In 2000, the population was 281.4 million, and
22.5% of them were living in the West. Is the difference in percentages practically significant?
Statistically significant? Or do these questions make sense? Explain briefly please
Solution
population in west in 1950 - 20.72 million
population in west in 2000- 63.315 million
this is both practically & statistically signiicant becoz this shows the change in population in 50
years in west . this change can be due to more development in west or other reasons . practically
it is significant becoz population increases in the areas where more development is there &
statically it shows the % change in the population in 50 years..
According to Higher Education Research Institute, 55 of college fre.pdfakashitproduct
According to Higher Education Research Institute, 55% of college freshmen in 4-year colleges
and universities during 2003 were female. Suppose 12 freshmen are randomly selected and the
number of female is recorded. Find the probability that exactly 10 of them are female A) 0.034
B) 0.55 C) 0.043 D) 0.45
Solution
a.
According to Classical Economistsm which type of fiscal policy finan.pdfakashitproduct
According to Classical Economistsm which type of fiscal policy financing produces inflation?
A. Tax increases
B. Monetizing Debt
C. Borrowing
D. Charging user fees to those who use government services
Solution
B
If government monetizes debt inflation will just increase.
According to Census data, in 1950 the population of the U.S. amounte.pdfakashitproduct
According to Census data, in 1950 the population of the U.S. amounted to 151.3 million persons,
and 13.4% of them were living in the West. In 2000, the population was 281.4 million, and
22.5% of them were living in the West. Is the difference in % practically significant?
statistically significant? Or do these questions make sense? Explain briefly.
Solution
population in west in 1950 - 20.72 million
population in west in 2000- 63.315 million
this is both practically & statistically signiicant becoz this shows the change in population in 50
years in west . this change can be due to more development in west or other reasons . practically
it is significant becoz population increases in the areas where more development is there &
statically it shows the % change in the population in 50 years..
According to Harpers Index, 50 of all federal inmates are serving t.pdfakashitproduct
According to Harpers Index, 50% of all federal inmates are serving time for drug dealing. A
random sample of 10 federal inmates is selected. Find the probability that exactly 4 of them are
serving time for drug dealing A) 0.205 B) 0.795 C) 0.400 D) 0.500
Solution
C) 0.400.
According to Classical economists, which type of fiscal policy finan.pdfakashitproduct
According to Classical economists, which type of fiscal policy financing produces \"crowding
out\"
A. Tax Increases
B. Monetizing Debt
C. Borrowing
D. Charging user fees to those who use government services
Solution
A) Tax Increases
Crowding out happens when governments increase too much tax and leaving business with less
money, This happened in India before 1990s when there was socialistic economic structure and
also in china, before 80\'s. Their economies were just super bad..
According to Plato is it better to know the truth and be unhappy tha.pdfakashitproduct
According to Plato is it better to know the truth and be unhappy than to be happy but ignorant?
Solution
Yes, being happy without knowing truth is muffleheadedness, The wise is one who search for
truth that makes him happy. Being happy with ignorance is unhuman decesion, without
ignorance if you remain unhappy it is better than remaining happy with ignorance..
Adam Smith is called the father of modern economics and his book.pdfakashitproduct
Adam Smith is called the \"father of modern economics\" and his book The Weath of Nations, a
fundamental work in the field of economics, is considered the first modern book on economics.
In addition, economics first became a study in 1776 when The Wealth of Nations was published.
Why is the word \"modern\" used in both descriptions? I know that individuals throughout the
centuries and even Aristotle have dabbled with some economic theories, but I do not recall
anyone making any significant contributions to economics before Adam Smith.
Were there important contributions to economics made before 1776? If not, then why do we use
the term \"modern\" even if there was no one in the study previously?
Solution
Direct predecessors to Adam Smith within the classical tradition (maybe a more useful
distinction than modern) include Hume, Locke and Dudley North. Before the classical
economists, there were the physiocrats (18th century), such as Francois Quesnay and Turgot. The
physiocrats emphasised agricultural productivity as a driver of the wealth of nations. They were
contemporaneous with, but also preceded by mercantilists (16th century - 18th century).
Mercantilists mostly concentrated on creating a favorable balance of trade, which would allow
reserves to accumulate in the possession of an absolute ruler. They emphasized government
control of the economy as an extension of state power. The mercantilists had a lot of influence in
the policies of nations, for instance in the form of Colbert. Famous writers might include de
Malynes and Mun. Mercantilists were one of the main targets of Adam Smith\'s critique. The
distinction being that mercantilists believed the quantity of reserves to be the ultimate source of a
nation\'s wealth and so emphasized protectionism, while Smith focused more on trade allowing
inputs to become more productive. In doing so he was very influenced by Quesnay to whom he
had considered dedicating The Theory of Moral Sentiments. The inclusion of gains from trade,
self-interest and competition leading to increased productivity, and division of labor
distinguishes Smith from these earlier writings and forms the link to \"modern\" economics.
There were also \"economists\" long before the 16th century, the connections between them and
economics is we understand it tends to become more tenuous the farther back you go. Iba
Khaldun is a good example, Aristotle (or more likely one of his students) literally wrote a book
called \"Economics\" (this deals with economics in the literal sense of management of a
household), you could also talk about Hesiod\'s \"Works and Days\" (a very old text indeed)
being an example of early economics..
Accounts Requiring AdjustmentIndicate with a Yes or No whether or .pdfakashitproduct
Accounts Requiring Adjustment
Indicate with a Yes or No whether or not each of the following accounts normally requires an
adjusting entry:
Classifying Assets
Identify each of the following as a current asset or property, plant, and equipment:a. Building
YES/NOb. Cash YES/NOc. Interest Expense YES/NOd. Miscellaneous Expense YES/NOe.
Common Stock YES/NOf. Prepaid Insurance YES/NO
Solution
Accounts Requiring Adjustment
a) Building : Yes
b) Cash : No
c) Interest Expense : Yes
d) Miscellaneous Expense : No
e) Common Stock : Yes
f) Prepaid Insurance : Yes
Classifying Assets
1. Accounts Receivable : Current Asset
2. Building : Property Plant and Equipment
3. Cash : Current Asset
4. Equipment : Property Plant and Equipment
5. Prepaid Insurance : Current Asset
6. Supplies ; Current Asset.
Accrual accounting consists of all the techniques developed by accou.pdfakashitproduct
Accrual accounting consists of all the techniques developed by accountants to apply the
matching rule. What is the importance of the matching rule?
Solution
Answer: Matching Principle requires that expenses incurred by an organization must be charged
to the income statement in the accounting period in which the revenue, to which those expenses
relate, is earned.
Importance of matching:
The matching principle a basic accounting principle that is adhered to in order to ensure
consistency in a company\'s financial statements: i.e. the income statement, balance sheet, etc.
If expenses are recognized at the wrong time, the financial statements may be greatly distorted:
in turn jeapordizing the quality of the statements and providing an unfair representation of the
financial position of the business.
For example:.
According to a study, the scale of scores on an IQ test of adults is.pdfakashitproduct
According to a study, the scale of scores on an IQ test of adults is approximately Normal with
mean 99 and standard deviation 17. The organization MENSA, which calls itself \"the high-IQ
society,\" requires an IQ score of 130 or higher for membership.
What percent of adults (
Solution
u=99
s=17
x=130
z = (x-u)/s = 2
P(X>130) = P(Z>2)
= 1 - P(Z<2)
= 1 - 0.9772
= 0.0228.
According to the Us Census Bureau, in 2007 about 10 of persons betw.pdfakashitproduct
According to the Us Census Bureau, in 2007 about 10% of persons between 25 and 30 years old
live alone. Let S be the event a person lives alone. If five persons in that are group are randomly
selected,
a) Find the probabilty of the sequence SFFSF.
b) Find the probability of exactly 2 S\'s.
Solution
a) p = 0.1 * 0.9 * 0.9 * 0.1 * 0.9 = 0.00729
b) p = 5C2 * ( 0.1 )^2 * ( 0.9 ) ^3 = 0.0729.
Accordingly to Whitman and Mattord the containment phase is the thir.pdfakashitproduct
Accordingly to Whitman and Mattord the containment phase is the third stage of the incident
response phase. Two-bit level copies of the system\'s hard drive will be made once the system is
in the posession of the incident-handling team. What are the two copies and why are they made?
Solution
A bit-stream copy is a bit-by-bit copy of the original storage medium. A bit-stream copy is an
exact duplicate of the original disk, while a backup copy is nothing but a compressed file stored
in a folder. Bit-streaming can create an exact image of a disk, as it is copied bit-by-bit.
A bit-stream image is a file that contains a duplicate copy of all the data on a disk or disk
partition. To create a bit-stream image of an evidence disk, an investigator should copy the bit-
stream image to a target work disk, which is identical in all aspects to the evidence disk. Before
copying the disk, the investigator must ensure that the disk used for copying is similar (in other
words, the manufacturer and model of the target disk must be the same as the manufacturer and
model of the original evidence disk).
Although some software tools that create bit-stream images can accommodate a target disk of a
different size, it is better to have the same size disks. The computer is used only when the bit-
stream copies of the disk drives and floppy disks are made..
According to the Texas Department of State Health Services, there ar.pdfakashitproduct
According to the Texas Department of State Health Services, there are approximately 17.7
million adults (age 18+) living in Texas, of which 1.47 million have diabetes. In 2010, 341,430
adult Texans were diagnosed with diabetes for the first time.
What is the incidence of diabetes in Texas? Express your answer in units of per 1000 persons
per year.
Solution
191 Patients with hepatocellular carcinoma (HCC) within Milan criteria receive
priority on the liver transplant(LT) waiting list(WL) and compete with non-HCC candidates. We
compared dropout from the WL using a competing risks approach to assess the relative access to
transplant for these two groups. The cohort consists of all candidates listed 4/14/04 - 12/31/2007
with HCC candidates identifi ed via initial exception application. Status 1 and pediatric patients
were excluded. Dropouts included removals for candidate death, too sick, and for other. A
multivariable waiting list analysis was performed using a Cox model of time to dropout and
competing risks model. Results: Non-HCC patients had a signifi cantly higher dropout rate from
the WL compared with HCC patients over one year after listing/exception. This was reproducible
across all regions. Ablation had little infl uence on HCC dropout. Larger tumor size, higher
MELD score and/or AFP were associated with increased dropout. Multivariable analysis with
competing risks showed that MELD, log AFP, max tumor size were of signifi cance in predicting
dropout for HCC patients. % dropout Days after Listing 30 60 90 180 365 Non-HCC All MELD
6.5 9 10.6 13.9 17.9 No Ablation 2.2 4 6 9.2 11.8 Ablation 1.4 3.1 4.7 8 11.2 Non-HCC MELD
<21 1.4 2.9 4.4 8.1 13.1 HCC + MELD < 8 0.6 1.4 1.9 4 6.6 HCC + MELD 8-11 0.9 2.4 3.7 6.1
8.5 HCC + MELD 11-14 1 2.8 4.3 7.8 10.3 HCC + MELD >14 3.9 6.6 9.4 13.9 17.7 Tumor < 2
cm 0.9 2.6 4.9 8.2 11.2 2-2.6 1.8 3.4 5.1 8 10.4 2.6-3.3 2.3 3.8 5.2 8.4 11.1 > 3.3 2 4.4 6.3 10
13.4 AFP < 500 1.7 3.2 4.8 7.5 10.2 500-1000 2.8 6.4 9.2 15.3 18.2 >1000 4 8.3 13 21.8 27.8
Conclusions: HCC patients appear to be advantaged in the current allocation scheme as shown
by lower dropout rates. This advantage is consistent through the UNOS regions. A continuous
score incorporating MELD, AFP and tumor size would help prioritize HCC with non-HCC
patients to help equate dropout rates and equalize the allocation scheme. Abstract# 4 Primary
Outcomes from a Randomized, Phase III Study of Belatacept vs Cyclosporine in Kidney
Transplant Recipients (BENEFIT Study). F. Vincenti,1 J. M. Grinyo,2 B. Charpentier,3 J. D.
Medina-Pestana,4 L. Rostaing,5 Y. Vanrenterghem,6 G. B. Di Russo,7 P. Garg,7 C.-S. Lin,7 C.
Larsen.8 1UCSF; 2Univ Hospital of Bellvitge; 3Hopital Bicetre; 4Hospital do Rim e Hipertensao
Unifesp; 5CHU Ranguell; 6Univ Hospital Kuleuven; 7Bristol-Myers Squibb; 8Emory Univ
School of Medicine. Introduction: Belatacept, a co-stimulation blocker, is being developed as an
immunosuppressant for kidney transplant recipients to avoid the renal and.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Accounting is the information system that identifies records and com.pdf
1. Accounting is the information system that identifies records and communicates the economic
events of an organization to interested users. True False
Bookkeeping deals with the record-keeping process and is only one aspect of accounting.
True False
Internal users are those who manage the business. True False
The Financial Accounting Standards Board is a private organization that establishes broad
reporting guidelines of general applicability as well as specific accounting rules.
True False
Certified Public Accountants are only permitted to prepare audit reports and tax returns.
True False
The economic entity assumption requires that the activities of the entity be kept separate and
distinct from the activities of its owners and all other economic entities. True False
Collection of account receivable will increase both cash and accounts receivable.
True False
An expense paid with cash would result in an equal decrease in liabilities and owner’s equity.
True False
Liabilities represent the owner ship claim on total assets. True False
Net Income is the excess of revenues over expenses for the accounting period. True
False
Assets are increased by debits and liabilities are decreased by credits. True False
The owner’s capital account is increased by credits True False
An account will have a credit balance if the total debit amounts exceed the total credit amounts.
True False
The ledger is the entire group of accounts and is referred to as the book of original entry.
True False
The basic steps in the recording process are (1) to analyze each transaction, (2) to enter the
transaction in a journal, and (3) to transfer the journal entry to the appropriate ledger accounts.
True False
The procedure of transferring journal entries to the ledger accounts is called posting and should
be performed in chronological order. True False
Assets = Liabilities + owner’s capital - owner’s drawing + revenues – expenses is a correct form
of the expanded basic accounting equation. True False
In posting, one should enter “J2” in the post ref. column on page two of the journal.
True False
When the columns of the trial balance equal each other, it proves no errors occurred in recording
2. and posting. True False
The double entry system is possible because all business transactions may be expressed in equal
debit and credit entries. True False
All of the following are external users of accounting information except
labor unions
taxing authorities
regulatory agencies
company officers
Recording consists of:
identifying and measuring economic events
preparing and disturbing accounting reports
Keeping a systematic, chronological diary of events measured in dollars and cents.
Identifying measuring, receiving, and communicating economic events to interested users.
Accounting for government, foundations, hospitals, labor unions, colleges/universities, and
charities is part of which broad category within the accounting profession?
Not-for-profit accounting
Management accounting
Public accounting
Cost accounting
Which of the following is not an acceptable statement of basic accounting equation?
Assets - Liabilities = Owner’s equity
Assets = Liabilities – Owner’s equity
Assets = Liabilities + Owner’s equity
Assets- Owner’s equity = Liabilities
The financial statement that summarizes information about the cash inflows and outflows during
a period is the
income statement
statement of retained earnings
balance sheet
statement of cash flows
Transactions are initially recorded in the
general ledger
general journal
trial balance
balance sheet
The rights side of an account is referred to as the
3. footing
chart side
debit side
credit side
A purchase of office equipment for cash requires a credit to
office equipment
cash
accounts payable
owner’s equity
The equality of the accounting equation can be proven by preparing a
trial balance
journal
general ledger
T-account
Which of the following accounts would be increased with a debit?
rent payable
owner’s capital
service revenue
owner’s drawing
Solution
Accounting is the information system that identifies records and communicates the economic
events of an organization to interested users. TRUE Bookkeeping deals with the record-
keeping process and is only one aspect of accounting. TRUE Internal users are those who
manage the business. FALSE. Internal useres includes Employees, owners etc The
Financial Accounting Standards Board is a private organization that establishes broad reporting
guidelines of general applicability as well as specific accounting rules. TRUE Certified
Public Accountants are only permitted to prepare audit reports and tax returns. FALSE .
They provide wide range of financial services The economic entity assumption requires that
the activities of the entity be kept separate and distinct from the activities of its owners and all
other economic entities. TRUE Collection of account receivable will increase both cash
and accounts receivable. FALSE. Increase cash reduce accounts receivable An expense
paid with cash would result in an equal decrease in liabilities and owner’s equity. FALSE.
Decrease in cash and increase in expense that finally reduce owners equity Liabilities
represent the owner ship claim on total assets. FALSE. It represents amount payable to
outsiders Net Income is the excess of revenues over expenses for the accounting period.
4. TRUE Assets are increased by debits and liabilities are decreased by credits. FALSE.
Asssets incresed by debit and liablities increased by credit The owner’s capital account is
increased by credits TRUE An account will have a credit balance if the total debit amounts
exceed the total credit amounts. FALSE. Will debit balance if debit exceeds credit The
ledger is the entire group of accounts and is referred to as the book of original entry. FALSE.
Journal is books of original entry The basic steps in the recording process are (1) to analyze
each transaction, (2) to enter the transaction in a journal, and (3) to transfer the journal entry to
the appropriate ledger accounts. TRUE The procedure of transferring journal entries to
the ledger accounts is called posting and should be performed in chronological order. TRUE
Assets = Liabilities + owner’s capital - owner’s drawing + revenues – expenses is a correct
form of the expanded basic accounting equation. TRUE In posting, one should enter “J2”
in the post ref. column on page two of the journal. FALSE. Posting one shuold enter ledger
folio number in journal reference When the columns of the trial balance equal each other, it
proves no errors occurred in recording and posting. FALSE. It only shows arithametical
accuracy The double entry system is possible because all business transactions may be
expressed in equal debit and credit entries. TRUE All of the following are external users of
accounting information except labor unions taxing authorities regulatory agencies
company officers ANS. Company officers. They are internal users Recording consists of:
identifying and measuring economic events preparing and disturbing accounting reports
Keeping a systematic, chronological diary of events measured in dollars and cents.
Identifying measuring, receiving, and communicating economic events to interested users.
Recording is : Keeping a systematic, chronological diary of events measured in dollars and
cents. Accounting for government, foundations, hospitals, labor unions, colleges/universities,
and charities is part of which broad category within the accounting profession? Not-for-profit
accounting Management accounting Public accounting Cost accounting Answer:
Not-for-profit accounting Which of the following is not an acceptable statement of basic
accounting equation? Assets - Liabilities = Owner’s equity Assets = Liabilities – Owner’s
equity Assets = Liabilities + Owner’s equity Assets- Owner’s equity = Liabilities
Wrong statement: Assets = Liabilities – Owner’s equity The financial statement that
summarizes information about the cash inflows and outflows during a period is the income
statement statement of retained earnings balance sheet statement of cash flows
Answer: statement of cash flows Transactions are initially recorded in the general ledger
general journal trial balance balance sheet Answer: general journal The rights side of
an account is referred to as the footing chart side debit side credit side Answer:
credit side A purchase of office equipment for cash requires a credit to office equipment
cash accounts payable owner’s equity Answer: cash The equality of the accounting
5. equation can be proven by preparing a trial balance journal general ledger T-account
Answewr: T-account Which of the following accounts would be increased with a debit?
rent payable owner’s capital service revenue owner’s drawing Answer: owner’s
drawing