If a 47 cash purchase of supplies is recorded as a 57 debit to Supplies Expense and a 57 credit to Cash, the result will be that
a. the trial balance will be out of balance.
b. the Supplies Expense account will be understated.
c. the Cash account will be overstated.
d. Supplies Expense will be overstated and Supplies will be understated.
e. none of these will be true.
Question 2
The second step in the analytical phase of accounting is
a. to determine whether there is an increase or a decrease in the accounts.
b. to determine which accounts are involved.
c. to formulate the entry as a debit to one account and as a credit to another account.
d. to identify the classification of the accounts involved.
e. none of these.
Sample purchase order form.
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