true or false1.like the journal,the ledger provides each account name its running balance. 2.the general journal can only answer the details of a particular transaction while the ledger can answer the summary of transactions related to the given account. 3.a compounded journal entry means two or more single entries combined into one journal entry.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
true or false1.like the journal,the ledger provides each account name its running balance.
2.the general journal can only answer the details of a particular transaction while the ledger can answer the summary of transactions related to the given account.
3.a compounded
4.declarations of stock dividends or stock splits are recorded as single or compounded entries in the general journal.
5.
6.reversing entries are the reverse of all adjusting entries at the beginning of the period.
7.an investment of a noncash asset to the business shall be valued at historical cost.
8 .an asset is expensed if already used in business.
9.a liability can be paid with another form of liability
10.a debit note issued by the bank to the depositor is taken by the depositor in his book as a debit in cash.
11.a credit note issued by the business to its customer is taken in the books of the issuer as debit to accounts receivable.
12.there is loss on notes discounting if the interest income is greater than the amount of discount on notes.
13.the
14.the recording of transactions is done first in the ledger , and then in the journal.
15. an expense will reduce the owner's capital.
16.withdrawal of owner's capital will debit the cash account.
17.a debit balance in the posting of an account means that there is an open asset account.
18. the posting on the PR column means that the value was already posted to the appropriate ledger account.
19.posting reference is needed from audit trail purpose.
20.the accounts reflected in the
21. the
22. non-interest bearing note is a note that does not have cost of money at all.
23. if asset is acquired through borrowings, the interest shall be treated as part of the acquisition cost of the asset.
24. an input VAT is a current asset.
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