Question 1

"PR" in the general journal and general ledger stands for

Accepted Answer

A)  peer reviewer. 
B)  posting reference. 
C)  prior receipt. 
D)  None of the above are correct. 
A)  peer reviewer. 
B)  posting reference. 
C)  prior receipt. 
D)  None of the above are correct.

Question 2

Posting is performed by transferring information from the journal to the

Accepted Answer

A)  ledger. 
B)  trial balance. 
C)  balance sheet. 
D)  income statement. 
A)  ledger. 
B)  trial balance. 
C)  balance sheet. 
D)  income statement.

Question 3

Posting is the process of entering amounts in the ledger.

Accepted Answer

A) True 
 B)False

Question 4

Revenue is recorded when earned.

Accepted Answer

A) True 
 B)False

Question 5

When the trial balance includes a debit column total of $14,350 and a credit column total of $15,350, it is probable that

Accepted Answer

A)  a transposition error occurred. 
B)  a $500 debit was recorded twice. 
C)  a $500 credit was recorded twice. 
D)  a $500 debit was recorded as a credit. 
A)  a transposition error occurred. 
B)  a $500 debit was recorded twice. 
C)  a $500 credit was recorded twice. 
D)  a $500 debit was recorded as a credit.

Question 6

Which of the following transactions would cause the trial balance to be out of balance?

Accepted Answer

A)  A debit to Cash and a debit to Equipment for the same amount 
B)  A credit to Cash and a debit to Supplies for the same amount 
C)  A debit to Accounts Receivable and a credit to Accounting Fees for the same amount 
D)  All of these answers are correct. 
A)  A debit to Cash and a debit to Equipment for the same amount 
B)  A credit to Cash and a debit to Supplies for the same amount 
C)  A debit to Accounts Receivable and a credit to Accounting Fees for the same amount 
D)  All of these answers are correct.

Question 7

How are explanations distinguished in the journal?

Accepted Answer

A)  They are underlined. 
B)  They are in bold print. 
C)  They are written below the credit entries. 
D)  They are written along the margin, beside the debit and credit entries. 
A)  They are underlined. 
B)  They are in bold print. 
C)  They are written below the credit entries. 
D)  They are written along the margin, beside the debit and credit entries.

Question 8

Julie, a new employee, is not sure of the effect the following unrelated situations would have on the accuracy of the financial statements. Identify the account(s) that are affected and if the trial balance would balance.
(a) Equipment was purchased for $1,000 cash. The debit was recorded properly, but the credit was omitted.
(b) A debit to Cash for $250 was posted as $2,500; the credit was posted correctly.
(c) A purchase of supplies on account for $75 was posted as a debit to Supplies and a credit to Cash.

Accepted Answer

(a) Cash is overstated by $1,000; the de

Question 9

Which of the following entries would record the payment of a utility bill?

Accepted Answer

A)  Utilities Expense, debit; Cash, credit. 
B)  Cash, debit; Utilities Expense, credit. 
C)  Utilities Expense, debit; Accounts Payable, credit. 
D)  Accounts Payable, debit; Utilities Expense, credit. 
A)  Utilities Expense, debit; Cash, credit. 
B)  Cash, debit; Utilities Expense, credit. 
C)  Utilities Expense, debit; Accounts Payable, credit. 
D)  Accounts Payable, debit; Utilities Expense, credit.

Question 10

If Cash has been debited, it is likely that

Accepted Answer

A)  the owner made an investment. 
B)  a charge customer made a payment. 
C)  the business borrowed cash from the bank. 
D)  All of these are possible. 
A)  the owner made an investment. 
B)  a charge customer made a payment. 
C)  the business borrowed cash from the bank. 
D)  All of these are possible.

Question 11

A debit to the Capital account was posted to a revenue account. This would cause

Accepted Answer

A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  capital to be understated. 
D)  revenue to be understated. 
A)  assets to be understated. 
B)  liabilities to be overstated. 
C)  capital to be understated. 
D)  revenue to be understated.

Question 12

A fiscal year runs for any 12 consecutive months.

Accepted Answer

A) True 
 B)False

Question 13

Prepare in proper form journal entries for the following transactions. Omit explanations.
October
2 Owner made a cash investment into the company $6,000
8 Bought supplies on account $100.
10 Paid salaries, $700
15 Paid for supplies purchased on October 8
21 Received company telephone bill, to be paid later, $50

Accepted Answer

The answer of Prepare in proper form journal entries for...

Question 14

The general journal entry to record the purchase of an asset on account would include

Accepted Answer

A)  a debit to Accounts Receivable and a credit to Fees Earned. 
B)  a debit to Equipment and a credit to Accounts Payable. 
C)  a debit to Accounts Payable and a credit to Equipment. 
D)  a debit to Supplies and a credit to Cash. 
A)  a debit to Accounts Receivable and a credit to Fees Earned. 
B)  a debit to Equipment and a credit to Accounts Payable. 
C)  a debit to Accounts Payable and a credit to Equipment. 
D)  a debit to Supplies and a credit to Cash.

Question 15

Rent paid in advance is a liability.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following accounts would be credited in a proper journal entry?

Accepted Answer

A)  Cash when it is increased 
B)  Service Fees when it is increased 
C)  Capital when it is decreased 
D)  Accounts Payable when it is decreased 
A)  Cash when it is increased 
B)  Service Fees when it is increased 
C)  Capital when it is decreased 
D)  Accounts Payable when it is decreased

Question 17

Which of the following statements is FALSE regarding a proper journal entry?

Accepted Answer

A)  Debits are always listed first in the entry. 
B)  Credits are always indented. 
C)  Skip a line between transactions. 
D)  Always list the assets first. 
A)  Debits are always listed first in the entry. 
B)  Credits are always indented. 
C)  Skip a line between transactions. 
D)  Always list the assets first.

Question 18

When the total debits equal the total credits on the trial balance, this is proof that all transactions have been recorded properly.

Accepted Answer

A) True 
 B)False

Question 19

The posting reference column on the general journal

Accepted Answer

A)  shows which transactions have been posted to the ledger. 
B)  displays to which accounts the transactions have been posted. 
C)  allows us to cross reference to the general ledger. 
D)  All of the above are correct. 
A)  shows which transactions have been posted to the ledger. 
B)  displays to which accounts the transactions have been posted. 
C)  allows us to cross reference to the general ledger. 
D)  All of the above are correct.

Question 20

Posting is the process of transferring information from the journal to the trial balance.

Accepted Answer

A) True 
 B)False

"PR" in the general journal and general ledger stands for

Posting is performed by transferring information from the journal to the

Posting is the process of entering amounts in the ledger.

Revenue is recorded when earned.

When the trial balance includes a debit column total of $14,350 and a credit column total of $15,350, it is probable that

Which of the following transactions would cause the trial balance to be out of balance?

How are explanations distinguished in the journal?

Which of the following entries would record the payment of a utility bill?

If Cash has been debited, it is likely that

A debit to the Capital account was posted to a revenue account. This would cause

A fiscal year runs for any 12 consecutive months.

The general journal entry to record the purchase of an asset on account would include

Rent paid in advance is a liability.

Which of the following accounts would be credited in a proper journal entry?

Which of the following statements is FALSE regarding a proper journal entry?

When the total debits equal the total credits on the trial balance, this is proof that all transactions have been recorded properly.

The posting reference column on the general journal

Posting is the process of transferring information from the journal to the trial balance.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 3: Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

"PR" in the general journal and general ledger stands for

Posting is performed by transferring information from the journal to the

Posting is the process of entering amounts in the ledger.

Revenue is recorded when earned.

When the trial balance includes a debit column total of $14,350 and a credit column total of $15,350, it is probable that

Which of the following transactions would cause the trial balance to be out of balance?

How are explanations distinguished in the journal?

Which of the following entries would record the payment of a utility bill?

If Cash has been debited, it is likely that

A debit to the Capital account was posted to a revenue account. This would cause

A fiscal year runs for any 12 consecutive months.

The general journal entry to record the purchase of an asset on account would include

Rent paid in advance is a liability.

Which of the following accounts would be credited in a proper journal entry?

Which of the following statements is FALSE regarding a proper journal entry?

When the total debits equal the total credits on the trial balance, this is proof that all transactions have been recorded properly.

The posting reference column on the general journal

Posting is the process of transferring information from the journal to the trial balance.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters