7. What is the broad term by which all revenue expenditure accounts are designated? Name and define five commonly used subdivisions of this account.
8. What is meant by journalizing? When purchase and sales books are used, what class of entries are made in the journal? Give three examples of journal entries involving transfers of value from one account to another.
9. What is a three column journal, and how is it used?
10. Journalize the following transactions:
| April 15. | Bought from Reliance Mills, on account | ||
| 94 bbls. flour @ | $4.75 | ||
| Sold to D. H. Pointer, on account | |||
| 15 bbls. flour @ | 5.35 | ||
| Sold to H. S. Fleming, on account | |||
| 60 bu. wheat @ | 1.05 | ||
| April 16. | Gave to Reliance Mills, my note payable in 60 days, to balance account | ||
| Received from D. H. Pointer note for 30 days to balance account. | |||
11. What is meant by posting? Explain the operation of posting, using one of the above transactions as an example.
12. In what particular does posting from the cash book differ from posting from the journal? Explain this difference, and illustrate with two examples.
13. What is a trial balance, and for what purpose is it taken? What does a trial balance prove?
14. What are cash discounts? Are cash discounts a proper charge against capital, or against revenue? Why?