Journalizing and Posting Transactions Flashcards

When a previously written-off bad debt is unexpectedly collected, the bookkeeper must first:

Answer: Reinstate the account receivable with a reversing entry, then record the cash receipt

The correct procedure reinstates the receivable by reversing the original write-off, then records the cash collection separately to maintain a complete audit trail.

The process of transferring debits and credits from the journal to the appropriate ledger accounts is called:

Answer: Posting

Posting is the process of copying journal entry information into the corresponding accounts in the general ledger.

Which of the following transactions increases both an asset and a liability?

Answer: Business purchases equipment on account

Purchasing equipment on account increases the Equipment asset and simultaneously increases Accounts Payable, a liability.

A slide error in bookkeeping means that:

Answer: A decimal point was moved incorrectly (e.g., $500 entered as $5,000)

A slide error occurs when the decimal point is misplaced, such as recording $500 as $5,000, and the difference is always divisible by 9.

In a T-account, the left side always represents:

Answer: The debit side

By convention, the left side of every T-account is always the debit side, regardless of whether debits increase or decrease that particular account.

A bookkeeper accidentally posts a $150 debit to Supplies instead of Office Equipment. This is an example of an error of:

Answer: Commission (wrong account)

An error of commission occurs when the correct amount is recorded but posted to the wrong account of the same type.

After all posting is complete, the next step in the accounting cycle is to:

Answer: Prepare an unadjusted trial balance

After posting, the bookkeeper prepares an unadjusted trial balance to verify that total debits equal total credits before making adjustments.