51. A trial balance that is in balance is proof that no errors were made in journalizing the transactions, posting to the ledger, and preparing the trial balance.
52. If cash was incorrectly debited for $100 instead of correctly credited for $100, the cash account is out of balance by $100.
53. The balance sheet provides a link between beginning and ending income statements.
54. The heading on each financial statement lists the three W's - Who (the name of the organization), What (the name of the statement), and Where (the organization's address)
55. Other names for the income statement are earnings statement, statement of operations, or profit and loss statement.
56. Another name for the balance sheet is the statement of financial position.
Multiple Choice Questions
57. The accounting process begins with:
A. Analysis of business transactions and events.
B. Preparation of financial statements and other reports.
C. Summarizing the recorded effects of business transactions.
D. Presentation of financial information to decision-makers.
E. Preparation of the trial balance.
58. Which of the following list of events properly reflects the early steps taken in the accounting process?
A. Record relevant transactions, post journal information to ledger accounts,analyze each transaction, and prepare and analyze the trial balance.
B. Post journal information to ledger accounts, analyze each transaction, post journal information to ledger accounts, and prepare and analyze the trial balance.
C. Prepare and analyze the trial balance, analyze each transaction, post journal information to ledger accounts, record relevant transactions.
D. Analyze each transaction, post journal information to ledger accounts, record relevant transactions, and prepare and analyze the trial balance.
E. Analyze each transaction, record relevant transactions, post journal information to ledger accounts, and prepare and analyze the trial balance.
59. A sales invoice:
A. Is a type of use document.
B. Is a source document.
C. Is not needed by buyers.
D. Gives rise to an entry in the accounting process.
E. Is not necessary in accounting.
60. Source documents include all of the following :
A. Sales tickets
B. Ledgers
C. Checks
D. Purchase orders
E. Bank statements