51) Which type of account is credited when a company records a debt?
A) expense
B) retained earnings
C) liability
D) asset
52) When a company purchases inventory on account (that is, on credit), which type of account is credited to record the transaction?
A) asset
B) expense
C) liability
D) owners' equity
53) The basic summary device of accounting is better known as the:
A) transactions
B) journal
C) account
D) financial statements
54) The accounting process of copying of amounts from the journal to the appropriate ledger accounts is referred to as:
A) journalizing
B) footing
C) balancing
D) posting
55) Which of the following items of information would not
normally be included in a journal entry?
A) the date the transaction took place
B) the dollar amount of the debit
C) the title of the account debited
D) the location where the transaction took place
56) Which element of an accounting system provides information about the balance in each account?
A) source documents
B) journals
C) ledgers
D) cash flow statement
57) In accounting, the process of posting is:
A) copying data from the ledger to the journal
B) copying data from the journal to the ledger
C) copying data from the source documents to the ledger
D) copying data from the source documents to the journal
58) The payment of the owner's personal expenses from the business's chequebook should be recorded with a debit to:
A) Cash
B) Dividends
C) Common shares
D) Accounts Receivable
59) The payment of salaries to employees would:
A) increase assets
B) increase net income
C) increase liabilities
D) decrease shareholders' equity
60) Posting, a part of the accounting process, refers to:
A) copying amounts from the accounts in the general ledger to the journal
B) copying amounts from the financial statements to the general ledger
C) copying amounts from the journal to the appropriate accounts in the general ledger
D) copying amounts from the general ledger to the financial statements