What is Centered on Trial Balance - Name of Business, Trial Balance, Date (ending)
100
Each Source documents affects how many accounts?
What is at least 2 accounts.
100
The purpose of the General Journal is?
What is the rough draft, my diary for recording my notes on the business transactions.
100
The purpose of the General Ledger is?
What is a permanent record organized by account name and number.. Final copy for the supervisor to show account balances.
100
When calculating the balance on the General Ledger which of the following statements is TRUE?
Debit + Debit = Add
Credit + Credit= Add
Debit + Credit = Subtract
What is All of them?
200
What is the purpose of the Trial Balance?
What is A formal way to prove that the General Ledger is balanced and correct.
200
When reviewing a source document what information are you looking for?
What is what accounts are affected (2), date of transaction, and amount ($)
200
What account is always listed 1st on the General Journal?
What is Debit Account.
200
What goes into the PR (post reference) section on the General Ledger? Explain.
What is either a check mark which means business transaction come from anywhere other than the General Journal.. Or a G# which means information came from the General Journal and list page #. For example G1
200
What does the double line under the balance of the debit and credit amounts mean?
What is that the Trial Balance is equal. The Debit Column = the Credit Column.
300
What does the double line under the total balance represent?
What is that the debit equal the credit
300
The Accounts Payable Account records business transactions that affected who? The business or client?
What is the business.
300
List the 6 steps to enter business transactions to the General Journal.
What is Enter Date, Enter Debit account, enter debit amount, enter credit account, enter credit amount, enter explanation.
300
List the 6 steps to posting business transactions on the General Ledger.
What is Enter date, enter description, enter post reference, enter debit/credit amount, calculate balance.
300
An Asset shows a positive balance on which side, Debit or Credit?
What is Debit.
400
What do you do if the debits do not equal the credits?
What is find the error and make the correcting entry.
400
What does the term - Net 30 days mean?
What is payment is due on or before 30 days.
400
What do you do to make a correction on the General Journal?
What is cross out the error and write corrected entry above it. Never use whiteout...
400
How do I correct an error on the General Ledger?
What is go back to the general ledger accounts affected. Add in the business transaction on the correct account and make a correcting entry on the incorrect account.
400
A Liability/Owners Equity shows a position balance on which side? Debit or Credit?
What is Credit.
500
Describe how to complete the Trial Balance in detail.
What is enter header (centered on top), Enter Account Number and Account Name, Enter Debit / Credit, Write Totals and draw the lines showing it balances.
500
What goes in the PR (post reference) section on this form?
What is nothing. It stays blank.
500
How do you set up a NEW General Ledger account?
What is Enter Account name, Account #, Enter Date, Write "Balance" on description line, Enter PR (post reference), enter debit or credit amount.
500
The Owner's Equity account is broken down into 3 parts. List the three accounts and explain how each account is set up in regards to the t-account.
What is Revenue (set up as a Liability), Expense and Withdrawal (set up as an asset).