Question

Help me answer this question.

1. What is one of the drinks that help you remember the debit rules? Choose One 20 points O Debit ADE O Mohito OGIN and Tonic O Lemonaade 2. What is one of the drinks that help you remember the credit rules? Choose One 20 points O LCR OVodka O Ginger ALE O ALC 3. What are the shopping cart accounts: Choose One 20 points O Assets, Drawing, and Capital OCapital, Revenue, Drawing, and Expenses O Liabilities, Capital, and Assets O Revenue and Expenses 4. What is the name of copying from the General Journal to the General Ledger? Choose One 20 points O Cross-referencing O Adjusting O Posting O Paging 5. True or False: Does the General ledger show running balances? Choose One 20 points O True O False

Answer 1

1. The correct answer is first option 'Debit ADE'. There is a general rule in accounting which is ADE = LCR, in which the left hand side is increased by debit, and it stands for Asset, Drawing, Expenses etc. and right side stands for increase by credit and it stands for Liabilities, capital and revenue.

2. As discussed above, the correct answer is 'LCR'.

3. 'Revenue and Expenses' accounts are regarded as Shopping cart accounts, as it involves inflow and outflow of cash from the business.

4. The correct answer is 'Posting'. Once the journal is prepared, the next step is to post the same to general ledger, the process is known as posting.

5. The statement is 'True'. A general ledger is a document which records all the transactions of a particular business at one place only. General ledger is prepared from journal entries that are recorded by the business. General ledger is one place where all the transactions occured of the company can be seen