GRAD 500 QUIZ 9
1. On a trial balance, if the Debit and Credit column totals are equal, then:
All transactions have been recorded correctly.
All ledger account balances are correct.
Equal debits and credits have been recorded for transactions.
The balance sheet would be correct.
1. The accounting principle that requires transactions be recorded at actual cash or cash equivalent is the:
Economic entity assumption.
1. Which of the following best describes the right side of a T-account?
1. All of the following require an adjusting entry at the end of the period with the exception of
Supplies used during the period.
Cash invested by owner.
Expired portion of prepaid insurance.
1. The income statement includes a summary of all the following items for a specific period of time except
1. The accounting principle that requires each business to be accounted for separately from owners and other business entities is the:
Economic entity assumption.
Business entity principle.
1. The steps in the recording process include all of the following except
Analyze each transaction.
Enter the transaction in the general journal.
Post to the accounting equation
Post the transaction in the general ledger.
1. A purchase of equipment on account affects the components of the accounting equation in the following way:
Decrease in an asset and an increase in owners’ equity
Increase in an asset and an increase in a liability
Decrease in a liability and an increase in owners’ equity
Increase in an asset and an increase in owners’ equity
1. An adjusting entry could be made for each of the following except:
1. Transactions are first recorded in the
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