Accounting Fundamentals – Journal Entries, Inventory
Systems, and Transaction Analysis | High School & College-
Level Guide
Which of the following serves to relay important information about a transaction to the
accountant? ✔✔Sales invoices, bills from suppliers, and cash register tapes
Norton Corp. has revenues of $5,000 and expenses of $2,000. What is the total effect on
retained earnings? ✔✔Increases $3,000.
Transaction analysis involves which of the following? ✔✔Identifying the elements involved in
the transaction
Identifying the accounts to be debited and credited
The payment of an account for supplies purchased in the previous month will ______ the cash
account. ✔✔Decrease
A ______ account represents the basic financial position elements of the accounting equation
and a _____ account keeps track of the changes in the retained earnings component of
shareholders' equity. ✔✔permanent; temporary
Repetitive transactions such as sales or purchases are usually recorded in a(n) ______ rather
than the general journal. ✔✔special journal
Sales invoices, bills from suppliers, and cash register tapes that relay information to the
accountant are referred to as _______ documents. ✔✔Source
In a journal entry, the amount to be _____ is entered in the first column, and the amount to be
_____ is entered in the second column ✔✔debited; credited
The process of reviewing the source documents to determine the dual effect on the accounting
equation and the specific elements involved is called ✔✔transaction analysis
The process of transferring debit and credit information from the journal to the ledger is called:
✔✔posting
, Royce Corporation pays for supplies purchased in the previous month. What is the effect on the
accounting equation for the payment of the supplies? ✔✔Decrease Liabilites / Decrease
Assests
Which of the following steps occurs only at the end of the year? ✔✔Close the temporary
accounts to retained earnings
A chronological record of all economic events affecting a firm are recorded in a(n) ✔✔Journal
A general journal entry should contain which of the following? ✔✔Supporting Explanations/
The date/ The accounts and amounts debited and credited.
Identify which transaction would result in the following journal entry: debit to Cash for $60,000
and credit to Common stock for $60,000. ✔✔Issue stock to investors
The process of transferring information from a journal entry to the specific accounts affected in
the general ledger is referred to as ✔✔Posting
The payment of an account for supplies purchased in the previous month will ______ the cash
account. ✔✔Decrease *
Beck Company borrowed $50,000 from the bank and signed a note. The journal entry Beck
makes to record this transaction includes ✔✔credit to notes payable $50,000
debit to cash for $50,000
Place the steps in the accounting process in the correct order.
- Prepare the the unadjusted trial balance
- Recored the transaction
- Analyze the transaction
- Post the journal to the general ledger ✔✔-Analyze the transaction
-Record the transaction
-Post from the journal to the general ledger
- Prepare the unadjusted trial balance
In step 3 of the accounting processing cycle: ✔✔the transaction is recorded in a journal
To record the issuance of common stock at par value, ✔✔Debit Cash/ Credit Common Stock
Systems, and Transaction Analysis | High School & College-
Level Guide
Which of the following serves to relay important information about a transaction to the
accountant? ✔✔Sales invoices, bills from suppliers, and cash register tapes
Norton Corp. has revenues of $5,000 and expenses of $2,000. What is the total effect on
retained earnings? ✔✔Increases $3,000.
Transaction analysis involves which of the following? ✔✔Identifying the elements involved in
the transaction
Identifying the accounts to be debited and credited
The payment of an account for supplies purchased in the previous month will ______ the cash
account. ✔✔Decrease
A ______ account represents the basic financial position elements of the accounting equation
and a _____ account keeps track of the changes in the retained earnings component of
shareholders' equity. ✔✔permanent; temporary
Repetitive transactions such as sales or purchases are usually recorded in a(n) ______ rather
than the general journal. ✔✔special journal
Sales invoices, bills from suppliers, and cash register tapes that relay information to the
accountant are referred to as _______ documents. ✔✔Source
In a journal entry, the amount to be _____ is entered in the first column, and the amount to be
_____ is entered in the second column ✔✔debited; credited
The process of reviewing the source documents to determine the dual effect on the accounting
equation and the specific elements involved is called ✔✔transaction analysis
The process of transferring debit and credit information from the journal to the ledger is called:
✔✔posting
, Royce Corporation pays for supplies purchased in the previous month. What is the effect on the
accounting equation for the payment of the supplies? ✔✔Decrease Liabilites / Decrease
Assests
Which of the following steps occurs only at the end of the year? ✔✔Close the temporary
accounts to retained earnings
A chronological record of all economic events affecting a firm are recorded in a(n) ✔✔Journal
A general journal entry should contain which of the following? ✔✔Supporting Explanations/
The date/ The accounts and amounts debited and credited.
Identify which transaction would result in the following journal entry: debit to Cash for $60,000
and credit to Common stock for $60,000. ✔✔Issue stock to investors
The process of transferring information from a journal entry to the specific accounts affected in
the general ledger is referred to as ✔✔Posting
The payment of an account for supplies purchased in the previous month will ______ the cash
account. ✔✔Decrease *
Beck Company borrowed $50,000 from the bank and signed a note. The journal entry Beck
makes to record this transaction includes ✔✔credit to notes payable $50,000
debit to cash for $50,000
Place the steps in the accounting process in the correct order.
- Prepare the the unadjusted trial balance
- Recored the transaction
- Analyze the transaction
- Post the journal to the general ledger ✔✔-Analyze the transaction
-Record the transaction
-Post from the journal to the general ledger
- Prepare the unadjusted trial balance
In step 3 of the accounting processing cycle: ✔✔the transaction is recorded in a journal
To record the issuance of common stock at par value, ✔✔Debit Cash/ Credit Common Stock
