ACG 3131 Exam 1 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
collects and processes transaction data and then disseminates the financial information to
interested parties. They vary widely from one business to another. ✔Correct Answer-
accounting information system
A happening of consequence. An event generally is the source or cause of changes in assets,
liabilities, and equity. Events may be external or internal. ✔Correct Answer-event
An external event involving a transfer or exchange between two or more entities. ✔Correct
Answer-transaction
A systematic arrangement that shows the effect of transactions and other events on a specific
element (asset, liability, and so on). Companies keep a separate account for each asset, liability,
revenue, and expense, and for capital (owners' equity). Because the format of an account often
resembles the letter T, it is sometimes referred to as a T-account. ✔Correct Answer-account
are asset, liability, and equity accounts; they appear on the balance sheet. they do not close
these accounts ✔Correct Answer-real accounts
are revenue, expense, and dividend accounts; except for dividends, they appear on the income
statement. Companies periodically close nominal accounts ✔Correct Answer-nominal
accounts
The book (or computer printouts) containing the accounts. ✔Correct Answer-ledger
a collection of all the asset, liability, owners' equity, revenue, and expense accounts. ✔Correct
Answer-general ledger
contains the details related to a given general ledger account. ✔Correct Answer-subsidiary
ledger
The "book of original entry" where the company initially records transactions and selected
other events. Various amounts are transferred from the book of original entry to the ledger.
✔Correct Answer-journal
The process of transferring the essential facts and figures from the book of original entry to the
ledger accounts.
1. In the ledger, in the appropriate columns of the account(s) debited, enter the date, journal
page, and debit amount shown in the journal.
, 2. In the reference column of the journal, write the account number to which the debit amount
was posted.
3. In the ledger, in the appropriate columns of the account(s) credited, enter the date, journal
page, and credit amount shown in the journal.
4. In the reference column of the journal, write the account number to which the credit amount
was posted. ✔Correct Answer-posting
The list of all open accounts in the ledger and their balances. companies may prepare this at any
time. does not prove that a company recorded all transactions or that the ledger is correct.
✔Correct Answer-trial balance
The trial balance taken immediately after all adjustments have been posted. the purpose is to
prove the equality of the total debit balances and the total credit balances in the ledger after all
adjustments. Because the accounts contain all data needed for financial statements, this is the
primary basis for the preparation of financial statements. ✔Correct Answer-adjusted trial
balance
A trial balance taken immediately after closing entries have been posted. A company may take a
third trial balance after posting the closing entries. The purpose of this trial balance is to prove
the equality of the permanent account balances that the company carries forward into the next
accounting period. Since all temporary accounts will have zero balances, the post-closing trial
balance will contain only permanent (real)—balance sheet—accounts. ✔Correct Answer-post-
closing
Entries made at the end of an accounting period to bring all accounts up to date on an accrual
basis, so that the company can prepare correct financial statements. Can be classified as
prepayment or accruals. ✔Correct Answer-adjusting entries
statements that reflect the collection, tabulation, and final summarization of the accounting
data. Four statements are involved. ✔Correct Answer-financial statements
shows the financial condition of the enterprise at the end of a period ✔Correct Answer-
balance sheet
reports the cash provided and used by operating, investing, and financing activities during the
period ✔Correct Answer-statements of cash flows
measures the results of operations during the period. classifies amounts into such categories as
gross profit on sales, income from operations, income before taxes, and net income.
✔Correct Answer-income statement
reconciles the balance of the retained earnings account from the beginning to the end of the
period. ✔Correct Answer-statement of retained earnings
Answers |Latest Version |Already Graded A+
collects and processes transaction data and then disseminates the financial information to
interested parties. They vary widely from one business to another. ✔Correct Answer-
accounting information system
A happening of consequence. An event generally is the source or cause of changes in assets,
liabilities, and equity. Events may be external or internal. ✔Correct Answer-event
An external event involving a transfer or exchange between two or more entities. ✔Correct
Answer-transaction
A systematic arrangement that shows the effect of transactions and other events on a specific
element (asset, liability, and so on). Companies keep a separate account for each asset, liability,
revenue, and expense, and for capital (owners' equity). Because the format of an account often
resembles the letter T, it is sometimes referred to as a T-account. ✔Correct Answer-account
are asset, liability, and equity accounts; they appear on the balance sheet. they do not close
these accounts ✔Correct Answer-real accounts
are revenue, expense, and dividend accounts; except for dividends, they appear on the income
statement. Companies periodically close nominal accounts ✔Correct Answer-nominal
accounts
The book (or computer printouts) containing the accounts. ✔Correct Answer-ledger
a collection of all the asset, liability, owners' equity, revenue, and expense accounts. ✔Correct
Answer-general ledger
contains the details related to a given general ledger account. ✔Correct Answer-subsidiary
ledger
The "book of original entry" where the company initially records transactions and selected
other events. Various amounts are transferred from the book of original entry to the ledger.
✔Correct Answer-journal
The process of transferring the essential facts and figures from the book of original entry to the
ledger accounts.
1. In the ledger, in the appropriate columns of the account(s) debited, enter the date, journal
page, and debit amount shown in the journal.
, 2. In the reference column of the journal, write the account number to which the debit amount
was posted.
3. In the ledger, in the appropriate columns of the account(s) credited, enter the date, journal
page, and credit amount shown in the journal.
4. In the reference column of the journal, write the account number to which the credit amount
was posted. ✔Correct Answer-posting
The list of all open accounts in the ledger and their balances. companies may prepare this at any
time. does not prove that a company recorded all transactions or that the ledger is correct.
✔Correct Answer-trial balance
The trial balance taken immediately after all adjustments have been posted. the purpose is to
prove the equality of the total debit balances and the total credit balances in the ledger after all
adjustments. Because the accounts contain all data needed for financial statements, this is the
primary basis for the preparation of financial statements. ✔Correct Answer-adjusted trial
balance
A trial balance taken immediately after closing entries have been posted. A company may take a
third trial balance after posting the closing entries. The purpose of this trial balance is to prove
the equality of the permanent account balances that the company carries forward into the next
accounting period. Since all temporary accounts will have zero balances, the post-closing trial
balance will contain only permanent (real)—balance sheet—accounts. ✔Correct Answer-post-
closing
Entries made at the end of an accounting period to bring all accounts up to date on an accrual
basis, so that the company can prepare correct financial statements. Can be classified as
prepayment or accruals. ✔Correct Answer-adjusting entries
statements that reflect the collection, tabulation, and final summarization of the accounting
data. Four statements are involved. ✔Correct Answer-financial statements
shows the financial condition of the enterprise at the end of a period ✔Correct Answer-
balance sheet
reports the cash provided and used by operating, investing, and financing activities during the
period ✔Correct Answer-statements of cash flows
measures the results of operations during the period. classifies amounts into such categories as
gross profit on sales, income from operations, income before taxes, and net income.
✔Correct Answer-income statement
reconciles the balance of the retained earnings account from the beginning to the end of the
period. ✔Correct Answer-statement of retained earnings
