Questions from General Accounting

Q: Josh Cephus has prepared the following list of statements about accounts.

Josh Cephus has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases,...

Q: (a) What is the primary source document for recording

(a) What is the primary source document for recording (1) cash sales, (2) credit sales. (b) Using XXs for amounts, give the journal entry for each of the transactions in part (a).

Q: Can a business enter into a transaction in which only the left

Can a business enter into a transaction in which only the left side of the basic accounting equation is affected? If so, give an example.

Q: Are the following events recorded in the accounting records? Explain your

Are the following events recorded in the accounting records? Explain your answer in each case. (a) The owner of the company dies. (b) Supplies are purchased on account. (c) An employee is fired. (d) T...

Q: (a) Should business transaction debits and credits be recorded directly

(a) Should business transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the ledge...

Q: (a) What is a ledger? (b)

(a) What is a ledger? (b) What is a chart of accounts and why is it important?

Q: In February 2010, Paula King invested an additional $10,

In February 2010, Paula King invested an additional $10,000 in her business, King’s Pharmacy, which is organized as a proprietorship. King’s accountant, Lance Jones, recorded this receipt as an increa...

Q: “A company’s net income appears directly on the income statement and

“A company’s net income appears directly on the income statement and the owner’s equity statement, and it is included indirectly in the company’s balance sheet.” Do you agree? Explain.

Q: What is a trial balance and what are its purposes?

What is a trial balance and what are its purposes?

Q: Define current assets. What basis is used for arranging individual items

Define current assets. What basis is used for arranging individual items within the current assets section?