Process of initially recording business transactions


1.Paid the rent for the next six months.
A) An asset would be debited and an expense credited.
B) An asset would be debited and a revenue credited.
C) Capital would be debited and a revenue credited.
D) An asset would be debited and an asset credited.

2.The journal described as the simplest form is a (an):
A) accounting journal.
B) general journal.
C) special journal.
D) interim journal.

3.The process of initially recording business transactions in a journal is:
A) posting.
B) sliding.
C) journalizing.
D) transposing.

4.In the month of June, Davis Computers paid three months' rent in advance.The journal entry to record this transaction is:
A) Rent Expense Cash
B) Cash Prepaid Rent
C) Cash Rent Expense
D) Prepaid Rent Cash

5.Antonio's catered a reception. The total price was $1,200. The customer paid $200 cash and charged the remainder. The journal entry to record this trans- action is:
A) Cash 200
Accounts Receivable 200
B) Cash 200
Accounts Receivable 1,000
Catering Service Fees 1,200

 

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Accounting Basics: Process of initially recording business transactions
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