MUHASEBE I - Deneme Sınavı - 13

According to Dr./Cr. Rules for Expenses, expenses increase on left side by debiting while decrease on right side by crediting and normally show debit balance.

Journal entries include debit and credit effects of each transaction. In a journal entry, debits are ALWAYS entered first, and credits are INDENTED and listed second

The journalizing and posting process has five steps:
Step 1: Identify the accounts and the account types (asset, liability, or equity).
Step 2: Decide whether each account increases or decreases and then apply the rules of debits and credits.
Step 3: Record the transaction in the journal.
Step 4: Post the journal entry to the ledger.
Step 5: Determine whether the accounting equation is in balance.

A trial balance is an internal document used only by company insiders. Outsiders see only the company’s financial statements, not the trial balance.

Posting is the procedure of transferring journal entries to the ledger accounts.

Analyzing includes identification of economic events to understand how it affects accounting equation and which accounts should be used in recording.

Cash is included in Typical Asset Accounts.

The correct answer to question is option A. A debit entry is recorded on the left side of a T-account. A credit entry is recorded on the right side of a T-account. Assets have a debit balance, while liabilities and shareholders' equity have a credit balance.

The correct answer is C. A trial balance summarizes the accounts by listing all the accounts with their balances—assets first, followed by liabilities, and then owner’s equity.

The correct answer is C. Assets, distributions and expenses normally show debit balance.Liabilities, contributions and revenues normally show credit balance.

A debit entry to an account increases assets. A credit entry to an account increases liabilities and owner's equity.

The correct answer is B. Accounts payable and unearned revenue are liability account. Prepaid expenses is a asset account.

There are three main steps which occur repeatedly in the recording process: Analyzing, journalizing and posting. The correct sequence of these steps is in option D.

The correct answer is D. Because in a journal entry, debits are always entered first, and credits are intended and listed second.

Accounts are the basic storage units for accounting data and are used to accumulate amounts from similar financial transactions. So, an account is a summary device of accounting.

The correct answer is question E. Income and expense accounts are shown in the income statement. Payables and suppplies are shown in balance sheet.

Assets = Liabilities + Owner’s Equity

750 = 300 + Owner’s Equity

Owner’s Equity =450

Prepaid Expenses. Companies might pay certain expenses in advance, such as insurance and rent. A prepaid expense is considered as an asset because the prepayment provides a future benefit for the business. Prepaid Rent, Prepaid Insurance, and Supplies are examples of prepaid expenses.

Unearned Revenue (Advances from customers). The obligation occurs when a company receives cash from a customer in advance but has not provided the product or service. The company gives promise to provide services or deliver goods in the future.

A chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger. The numbering system usually starts with the balance sheet accounts and follows with the income statement accounts.