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Transactions which do not affect the cash account do not need to be entered in the
journal, since they do not affect net income or loss.
The trial balance is used in preparing financial statements.
The income summary account appears on the income statement at the end of the
accounting period.
The petty cash payments record is a special journal that takes the place of entering these
transactions in the two-column journal.
Each employer must have an Employer Identification Number (EIN) to show on all tax
reports.
The ____________________ is used when a single line is drawn through the incorrect
account title or amount and the correct information is written directly above the line.
In most states, the state unemployment tax is levied only on employers.
A complete set of all the accounts used by a business is known as the general ledger.
Payments from the petty cash fund should not be made without obtaining some sort of
receipt in return.
A T account has three parts: the title, the debit side, and the credit side.
