Exam 3: Review of a Companys Accounting System

When reconciling its accounts, Boris Company found the accounts receivable general ledger account had a balance of $35,000, and the accounts receivable subsidiary ledger account balances totaled $33,000. The most likely reason for this difference was

A number of steps are typically completed during each accounting period to record, store, and report the accounting information contained in the recorded transactions. These steps are referred to as the accounting cycle. List the steps of the accounting cycle in the sequence in which they are performed.

The total of the individual customer account balances should equal the balance in Accounts Receivable, which is the

What is the primary purpose of a company's accounting system?

On May 1, 2013, Alang Corporation borrowed $3,600 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Alang makes all interest payments on schedule. The correct December 31, 2014, adjusting entry would be

Reversing entries should be made for any adjusting entry that adjusts the ending balance of an existing balance sheet account.

Reversing entries should not be made for

The entire group of accounts for a company is referred to as the

When preparing the financial statements the adjusted trial balance is prepared listing all the accounts and associated balances after the closing entries.

The adjustment necessary to convert payments for other operating costs, cash-basis, to operating expenses, accrual-basis, is to add ending prepaid expenses to the beginning prepaid expenses subtract the beginning accrued expenses and add the ending accrued expenses.

Which of the following is not a major step necessary to complete the accounting cycle?

Which accounts are increased with debits?

List the major steps in the accounting cycle.

Which of the following is a periodic account?

Posting is the procedure of transferring information from the

What relationship exists between the general journal and the general ledger?

A prepaid expense is

A subsidiary ledger is

Which of the following rules is incorrect?

If the trial balance does not balance check to see if the difference is evenly divisible by 9, if so there may be a transposition.