Quiz Ch 02 – T/F Impact of Stock Dividend on Company’s Cash and Expenses
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Paying dividends to stockholders reduces both cash and expenses for a company.
Paying dividends to stockholders reduces both cash and expenses for a company.
It’s important to provide a brief description of the transaction in each journal entry.
The preparation of a trial balance is mandatory for financial reporting.
In James Corporation’s trial balance, the equality between total debits and total credits confirms the absence of errors in the accounts.
Credit entries are recorded on the left margin and debits are indented to the right.
Journal entries may have multiple accounts, as long as debits and credits are equal.
Assets or revenue accounts are typically accounts with a normal debit balance.
Posting involves transferring data from the ledger to the journal.
Trial balance summarizes account balances and verifies debit-credit equality in financial statements.
The trial balance lists account in random order.