Module 5

Question 1

is the series of sequential steps or procedures performed to accomplish the accounting process

Answer 1

Accounting Cycle

Question 2

the way to make sure that accounting process will be accomplished.

Answer 2

Accounting Cycle

Question 3

To gather information about transactions or events generally through source documents

Answer 3

Identification of the
events to be recorded

Question 4

To record economic impact of transactions on the firm in a journal which is a form that facilitates transfer to the accounts

Answer 4

Transactions are recorded in the journal

Question 5

To transfer the journal to the ledger for classification

Answer 5

Journal Entries are posted to the ledger

Question 6

To provide a listing to verify the equality of debits and credits in the ledger

Answer 6

Preparation of of Trial Balance

Question 7

To aid in the preparation of financial statements.

Answer 7

Preparation of Worksheet including adjusting entries:

Question 8

To provide useful information to decision makers

Answer 8

Preparation of Financial Statements

Question 9

To record the accruals, expiration of deferrals, estimations and other events from the worksheet.

Answer 9

Adjusting Joumal Entries are journalized and posted

Question 10

To close temporary accounts and transfer profit to owner’s equity

Answer 10

Closing Journal Entries are journalized and posted

Question 11

To check the equality of debits and credits after closing entries

Answer 11

Preparation of Post- Closing Trial Balance

Question 12

To simplify the recording of certain regular transactions in the next accounting period

Answer 12

Reversing Journal Entries are journalize and posted

Question 13

This step involves identifying a business transaction and analyzing whether or not that transaction affects the assets, liabilities, equity, income or expenses of the business

Answer 13

Step 1: Identification of the events to be recorded

Question 14

A transaction that has an effect on the accounts

Answer 14

Accountable Event

Question 15

Needs to be recorded in the books of
account Transactions

Answer 15

Accountable Event

Question 16

are normally identified from source documents.

Answer 16

Transactions

Question 17

are the written evidences containing information about the transactions

Answer 17

Source documents

Question 18

Give 5 Source Document Examples

Answer 18

• Sales invoices
• Official receipts
• Purchase orders
• Bank deposit slips .
• Bank statements
• Checks
  -Delivery receipts
  -Statement of accounts

Question 19

is critical and important in accounting cycle. It is an important step to make sure the reliability of information to be processed in accounting.

Answer 19

Analyzing business transactions

Question 20

After an accountable event is identified and analyzed, the second step is to record it in the journal by means of a journal entry in the recording process called journalizing.

Answer 20

Step 2: Transactions are recorded in the journal

Question 21

After an accountable event is identified and analyzed, the second step is to record it in the journal by means of a ____________ in the recording process called journalizing.

Answer 21

journal entry

Question 22

After an accountable event is identified and analyzed, the second step is to record it in the journal by means of a journal entry in the recording process called ______________.

Answer 22

Journalizing

Question 23

journal entries are recorded in the journal chronologically

Answer 23

Date

Question 24

under double entry accounting system, each transaction is recorded in the journal in two parts

Answer 24

Account titles

Question 25

Account titles under double entry accounting system, each transaction is recorded in the journal in two parts ______________ aligned in the left. ✓ Credit account title-indented to the right (to show credit represents right side)

Answer 25

Debit Account Title

Question 26

Account titles under double entry accounting system, each transaction is recorded in the journal in two parts Debit Account Title aligned in the left. _____________ indented to the right (to show credit represents right side)

Answer 26

Credit Account Title

Question 27

short description of the transaction (to record line)

Answer 27

Explanation

Question 28

code assigned for each account titles to facilitate the transferring or posting journal entries to ledger

Answer 28

Posting Reference

Question 29

debit and credit written the same way as account title

Answer 29

Amount

Question 30

one which contains a single debit and credit element. Same as the illustration in the previous page

Answer 30

Simple journal entry

Question 31

one which contains two or more debits or credits Observe the illustration below

Answer 31

Compound journal entry

Question 32

it is the process of recording journal entry in the joumal

Answer 32

Journalizing

Question 33

A type of journal entry with one debit and credit account

Answer 33

Simple Journal Entry

Question 34

A written document evidencing the transaction occurred

Answer 34

Source Document

Question 35

It is the book of the onginal entry

Answer 35

Journal

Question 36

it is the short description for a tra a transaction in a a journal entry

Answer 36

Explanation

Question 37

This is the first step in the accounting cycle

Answer 37

Identification of events to be Recorded

Question 38

The arrangement used in recording journal entry following one after another in time

Answer 38

Chronological Order

Question 39

It is the process of recognition of an event as accountable

Answer 39

Identifying

Question 40

The code assigned for each account titles to facilitate the transferring or posting journal entries to ledger

Answer 40

Posting Reference

Question 41

Journal entry which contains two or more debits or credits

Answer 41

Compound Journal Entry

Question 42

First 5 steps of accounting cycle

Answer 42

1. Identification of the events to be recorded 2. Transactions are recorded in the journal 3. Journal Entries are posted to the ledger 4. Preparation of Trial Balance 5. Preparation of Worksheet including adjusting entries

Question 43

The 6 to 10 steps of accounting cycle

Answer 43

6. Preparation of Financial Statements 7. Adjusting Journal Entries are Journalized and Posted 8. Closing Journal Entries are Journalized and Posted 9. Preparation of Post-Closing Trial Balance 10. Reversing Journal Entries are Journalized and Posted