Accounting process

This is called as the book of initial entry.

Journal

This is called as the book of final entry

Ledger

The following accounts can be reverse, except

a) Deferred income under income method
b) Deferred expense under asset method
c) Accrual of income
d) Accrual of expense

B
- Deferred expense under expense method

S1. If the only given says there’s an “increase in balance” the assumption is that, the beginning balance is 0, and whatever the increase is the ending balance
S2. If the only given says there’s an “decrease in balance” the assumption is that, whatever the decrease is the beginning balance, and the ending balance is 0.

a) True, False
b) False, True
c) True, True
d) False, False

C

When a note receivable is silent, the assumption is nontrade. (T/F)

False
- trade

When a note payable is silent, the assumption is trade. (T/F)

True

Sales journal is a where all sales are recorded to. (T/F)

False
- Only sales on account

Cash receipt journal is where cash from specific sources are recorded to. (T/F)

False
- All sources

Purchase journal is where all purchases are recorded to. (T/F)

False
- Purchases on account

Cash disbursement records all cash payment relating to the procurement of goods by the entity. (T/F)

False
- All cash payment made by the business. b

A correcting journal entry is