Exam 3: Review of a Companys Accounting System

Several accounts are listed below: a.Cash b.Retained Earnings c.Unearned Rent d.Purchases Discounts Taken e.Accounts Payable f.Accumulated Depreciation g.Dividends h.Sales Revenue i.Capital Stock j.Rent Expense k.Prepaid Insurance l.Interest Income Required: In the space to the left of each account, place a (P) if the account is a permanent account or a (T) if the account is a temporary account.

An organization will typically utilize a subsidiary ledger to

Rental receipts for the period July 1, 2013, through June 30, 2014, were collected on June 30, 2013. The effects of these economic events on the 2013 financial statements for unearned revenue and rent revenue are

Marlin Company has all of the special journals that were described in your text (other than the voucher register) as a part of its accounting system. Which of the following journal entries would therefore be recorded in Marlin general journal?

On a worksheet, which account will not be extended to the Balance Sheet columns?

Which statement is true?

What are the advantages of using the general journal when recording journal entries?

Required: Record the preceding transactions in a general journal.

Which of the following is an economic resource that should be depreciated over the accounting periods estimated to be benefited?

Which of the following is the third major step in the accounting cycle?

Which of the following is a contra account?

On April 1, 2014, Miller Company paid $6,280 for a two-year insurance policy. On that date, the company charged an asset account. The correct December 31, 2014, adjusting entry would be

Where would the closing entries be found for a particular company?

An accrued expense is an expense

If the trial balance does not balance and the difference between debits and credits is evenly divisible by 9, there is a good chance that

Although optional, a reversing entry is usually made for adjusting entries that accrue expenses to be paid in the next accounting period.

The worksheet is an internal tool that assists with the preparation of the adjusting entries and the financial statements.

Which of the following is true regarding the general journal?

Which of the following is not a type of adjusting entry?

The last step in the accounting cycle is to prepare the financial statements.