Accounting and Finance

bank statements

books of original entry

ledger accounts

sales invoices

True

False

Outstanding checks

Deposits in transit

Bank service charges

None of the above

current asset

non-current asset

current liability

non-current liability

No effect (Income Statement) and No effect (Balance Sheet)

Profit overstated by $36 (income statement) and Non-current assets overstated by $36 (balance sheet)

Profit overstated by $36 (income statement)and Non-current assets understated by $36 (balance sheet)

Profit understated by $36 (income statement) and Non-current assets understated by $36 (balance sheet)

$601 debit

$601 credit

$1 867 debit

$1 867 credit

Yes

No

To avoid making alterations in the ledger

To complete the double entry

To provide a record explaining the ledger entries

To save the bookkeeper’s time

credit note

debit note

invoice

statement of account

$21 000

$22 000

$24 000

$26 000