11. Which one of the statements below is not a purposefor the journal?

a. to show increases and decreases in accounts

b. to show a chronological order by date

c. to show a complete transaction in one place

d. to help locate errors

12. The balance of an account is determinedby
a. adding all of the debits to all of the credits

b. always subtracting the debits from the credits

c. always subtracting the credits from the debits

d. adding all of the debits, adding all of the credits, and thensubtracting the smaller sum from the larger sum

13. The term used to describe an expense that hasnot been paid and has not yet been recognized in the accounts by aroutine entry is

a. prepaid

b. deferred

c. accrued

d. matched

14. The process of initially recording a businesstransaction is called

a. closing

b. posting

c. journalizing

d. balancing

15. Karen Meyer owns and operates Crystal CleaningCompany. Recently, Meyer withdrew $10,000 from CrystalCleaning, and she contributed $6,000, in her name, to the AmericanRed Cross. The contribution of the $6,000 should be recordedon the accounting records of which of the followingentities?

a. Crystal Cleaning and the American Red Cross

b. Karen Meyer's personal records and the American Red Cross

c. Karen Meyer's personal records and Crystal Cleaning

d. Karen Meyer's personal records, Crystal Cleaning, and theAmerican Red Cross

16. Accrued revenues would appear on the balancesheet as
a. assets
b. liabilities

c. stockholders' equity

d. prepaid expenses

17. Which of the following is not true with adouble-entry accounting system?

a. The accounting equation remains in balance.
b. The sum of all debits is always equal to the sum of all creditsin each journal entry.
c. Each business transaction will have two debits.

d. Every transaction affects at least two accounts.

18. How does the purchase of equipment by signing anote affect the accounting equation?
a. assets increase; assets decrease
b. assets increase; liabilities decrease
c. assets increase; liabilities increase
d. assets increase; stockholders' equity increases

19. Accounts

a. do not reflect money amounts

b. are not used by entities that manufacture products
c. are records of increases and decreases in individual financialstatement items
d. are only used by large entities with many transactions

20. Match the following items to the financialstatement where they can be found. (Hint: Some of the items can befound on more than one financial statement.)

A. Balance sheet
B. Income statement
C. Statement of cash flows
D. Retained earnings statement

#	Item
1.	Dividends
2.	Revenues
3.	Supplies
4.	Land
5.	Accounts payable
6.	Accounts receivable
7.	Operating activities
8.	Wages expense
9.	Net income
10.	Cash

Answer rating: 100% (QA)

ANS 1 OPTION A IS CORRECT EXPLANATION A journal is a detailed account that records all the financial transactions of a business to be used for the fut... View the full answer