Which of the following describes a trial balance?
A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts.
Which of the following is not a feature of accounting information?
Which of the following is the equation for determining net profit or loss from the records of a firm?
Your net income or net loss equals your total revenues minus your total expenses for an accounting period. If your revenues are greater than expenses, you have net income. If revenues are less than expenses, you have a net loss. example
Net profit or loss = Revenue - total expenses
Purchase invoice is first entered in the
Purchases account. The purchases account is a general ledger account in which is recorded the inventory purchases of a business. This account is used to calculate the amount of inventory available for sale in a periodic inventory system.
Purchase journal is used for recording goods bought on credit
Assets acquired is recorded by debiting _______?
Debit the appropriate asset account in a journal entry in your records by the cost of the asset. Credit the cash account in the same journal entry by the amount of cash you used toward the purchase. If you paid all cash, this amount is the same as the asset's cost.
Goods returned to a supplier is
When merchandise purchased for cash are returned to supplier, we need to record two journal entries. In first entry we debit accounts receivable account and credit purchases returns and allowances account (returns outwards would ve credited because goods are going out of the business). This entry is made to recognize the return of merchandise.
Which of the following is not a real account?
Examples of real accounts are:
The accounting ledger for goods sold on credit are debit
Accounting and journal entry for credit sales include 2 accounts, debtor and sales. In case of a journal entry for cash sales, cash account and sales account are used. The person who owes the money is called a “debtor” and the amount owed is a current asset for the company. Since the goods were sold on credit, debtor acount will be debited (increase in the amount of money being owed to the business), and sales account will be credited.
Which of the following is not a book of original entry?
Books of original entry refers to the accounting journals in which business transactions are initially recorded. They include;
What is a ledger entry for the sale of plant and machinery on credit to Wilson?
The sales and receipts classes of transactions are the typical journal entries, that debit accounts receivable (debtors) and credit sales revenue, and debit cash and credit accounts receivable in which the amount owed will be paid at a later date.