Which of the following correctly identifies normal balances of accounts?
Common Stock Credit
Transactions are initially recorded in the
A general journal provides
A chronological record of transactions
Which of the following statement is incorrect?
Expenses increase stockholders' equity
The procedure of transferring journal entries to the ledger accounts is called
An accountant has debited an asset account for $2,000 and credited a liability account for $1,000. What can be done to complete the recording of the transaction?
Credit a different asset account for $1,000
If A&B Restaurant purchases equipment on account for $3,000, then
Assets and liabilities both increase by $3,000
The Montric Restaurant owes BB tomatoes Inc. $5,000 on account. When the Montric Restaurant pays the debt, the transaction recorded on BB tomatoes Inc. will
Increase an asset $5,000 and decreases an asset $5,000
The restaurant decided to hire a cook for $15 per hour and the cook will work 40 hours a week. Which of the following correctly recorded the above transaction?
The standard format of a general journal would not include
The equity of the accounting equation can be proven by preparing a
Which of the following statements is incorrect?
A trial balance is referred to as the book of final entry
Which of the following is incorrect?
A general ledger is referred to as the book of original entry because they are the first place the transactions are recorded in an accounting system
Which of the following is not an advantage of a computerized accounting system?
The computer can make a precise judgment on accounting issues