Posting transactions to T-accounts involves:

A) Analyzing source documents to determine the effects of transactions on the company's accounts.

B) Listing all accounts and their balances at a particular date to ensure that debits equal credits.

C) Preparing a chronological record of all transactions affecting the company.

D) Transferring debit and credit information from the journal to the accounts in the general ledger.

Answer: D

A debit in a journal entry is always posted to the general ledger as a(n):

A) Increase.

B) Credit.

C) Decrease.

D) Debit.

Answer: D

Posting is the process of:

A) Analyzing the impact of the transaction on the accounting equation.

B) Obtaining information about external transactions from source documents.

C) Transferring the debit and credit information from the journal to individual accounts in the general ledger.

D) Listing all accounts and their balances at a particular date.

Answer: C

An account balance represents:

A) A chart showing the list of all accounts used to record transactions.

B) The net amount of all debits and credits posted to an account over a period of time.

C) All transactions that affect net income for the period.

D) The equality of debits and credits in the accounting records.

Answer: B

A transaction is initially recorded in the ________, and then subsequently posted to the general ________.

A) Debit; Credit

B) Statement; Account

C) Journal; Ledger

D) Chart; Statement

Answer: C

On July 31, ALOE Inc. received $5,000 cash from a customer who previously purchased ALOE's products on account. What entry should ALOE Inc. record at the time it receives cash?

A) Debit Accounts Receivable, $5,000; credit Cash, $5,000.

B) Debit Cash, $5,000; credit Accounts Receivable, $5,000.

C) Debit Cash, $5,000; credit Accounts Payable, $5,000.

D) Debit Cash, $5,000; credit Service Revenue, $5,000.

Answer: B

On July 5, Harris Company purchased supplies from the hardware store for $600 on account. On July 10, Harris receives a bill from the hardware store as a reminder about the account balance. On July 17, Harris pays the account in full. How does Harris record the transaction on July 17?

A. Supplies 600

Accounts Payable 600

B. Accounts Payable 600

Supplies 600

C. Cash 600

Accounts Payable 600

D. Accounts Payable 600

Cash 600

A) Option A

B) Option B

C) Option C

D) Option D

Answer: D