Question 1

The chart of accounts is a

Accepted Answer

A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the ledger. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process. 
A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the ledger. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process.

Question 2

An _______________ is a record of increases and decreases in specific assets, liabilities, and stockholders' items.

Accepted Answer

The answer of An _______________ is a record of increases...

Question 3

Which of the following statements is incorrect?

Accepted Answer

A)  Expenses increase stockholders' equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease stockholders' equity. 
D)  Expenses are a negative factor in the computation of net income. 
A)  Expenses increase stockholders' equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease stockholders' equity. 
D)  Expenses are a negative factor in the computation of net income.

Question 4

An account is an individual accounting record of increases and decreases in specific

Accepted Answer

A)  liabilities. 
B)  assets. 
C)  expenses. 
D)  assets, liabilities, and stockholders' equity items. 
A)  liabilities. 
B)  assets. 
C)  expenses. 
D)  assets, liabilities, and stockholders' equity items.

Question 5

Identify the impact on the accounting equation of the following transactions.
1. Purchased 36-month insurance policy for cash.
2. Purchased supplies on account.
3. Received utility bill to be paid at later date.
4. Paid utility bill previously accrued.

Accepted Answer

1. Net effect is no change: Increases as

Question 6

The name given to entering transaction data in the journal is

Accepted Answer

A)  chronicling. 
B)  listing. 
C)  posting. 
D)  journalizing. 
A)  chronicling. 
B)  listing. 
C)  posting. 
D)  journalizing.

Question 7

The ledger accounts should be arranged in

Accepted Answer

A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal. 
A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal.

Question 8

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense. 
A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense.

Question 9

European companies rely

Accepted Answer

A)  less on historical cost and more on fair values than U.S. companies. 
B)  less on fair values and more on historical cost than U.S. companies. 
C)  completely on fair values for financial reporting. 
D)  completely on historical cost for financial reporting.
IFRS. 
A)  less on historical cost and more on fair values than U.S. companies. 
B)  less on fair values and more on historical cost than U.S. companies. 
C)  completely on fair values for financial reporting. 
D)  completely on historical cost for financial reporting.
IFRS.

Question 10

The complete effect of a transaction on the accounts is disclosed in the journal.

Accepted Answer

A) True 
 B)False

Question 11

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets. 
A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets.

Question 12

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

Question 13

In recording an accounting transaction in a double-entry system

Accepted Answer

A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction. 
A)  the number of debit accounts must equal the number of credit accounts. 
B)  there must always be entries made on both sides of the accounting equation. 
C)  the amount of the debits must equal the amount of the credits. 
D)  there must only be two accounts affected by any transaction.

Question 14

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

Accepted Answer

A)  nothing further must be done. 
B)  debited the retained earnings account for $2,100. 
C)  credited another asset account for $400. 
D)  credited a liability account for $2,100. 
A)  nothing further must be done. 
B)  debited the retained earnings account for $2,100. 
C)  credited another asset account for $400. 
D)  credited a liability account for $2,100.

Question 15

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?

Accepted Answer

A)  Credit an asset account for $400. 
B)  Credit another liability account for $400. 
C)  Credit the retained earnings account for $400. 
D)  Debit the retained earnings account for $400. 
A)  Credit an asset account for $400. 
B)  Credit another liability account for $400. 
C)  Credit the retained earnings account for $400. 
D)  Debit the retained earnings account for $400.

Question 16

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts.
What is your response to this statement? Be brief, yet concise.

Accepted Answer

You have a very good point regarding the

Question 17

A trial balance may balance even when each of the following occurs except when

Accepted Answer

A)  a transaction is not journalized. 
B)  a journal entry is posted twice. 
C)  incorrect accounts are used in journalizing. 
D)  a transposition error is made. 
A)  a transaction is not journalized. 
B)  a journal entry is posted twice. 
C)  incorrect accounts are used in journalizing. 
D)  a transposition error is made.

Question 18

At September 1, 2018, Promise Ring Co. reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the amount of stockholders' equity at September 30, 2018?

Accepted Answer

A)  $166,000 
B)  $171,000 
C)  $173,000 
D)  $176,000 
A)  $166,000 
B)  $171,000 
C)  $173,000 
D)  $176,000

Question 19

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

Accepted Answer

A)  the company's bank. 
B)  stockholders' equity. 
C)  ledger accounts. 
D)  financial statements. 
A)  the company's bank. 
B)  stockholders' equity. 
C)  ledger accounts. 
D)  financial statements.

Question 20

If a revenue account is credited, the revenue account is increased.

Accepted Answer

A) True 
 B)False

The chart of accounts is a

An _______________ is a record of increases and decreases in specific assets, liabilities, and stockholders' items.

Which of the following statements is incorrect?

An account is an individual accounting record of increases and decreases in specific

Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.

The name given to entering transaction data in the journal is

The ledger accounts should be arranged in

The double-entry system requires that each transaction must be recorded

European companies rely

The complete effect of a transaction on the accounts is disclosed in the journal.

The final step in the recording process is to transfer the journal information to the

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

In recording an accounting transaction in a double-entry system

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts. What is your response to this statement? Be brief, yet concise.

A trial balance may balance even when each of the following occurs except when

At September 1, 2018, Promise Ring Co. reported stockholders' equity of $156,000. During the month, Promise Ring generated revenues of $38,000, incurred expenses of $21,000, purchased equipment for $5,000 and paid dividends of $2,000. What is the amount of stockholders' equity at September 30, 2018?

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

If a revenue account is credited, the revenue account is increased.

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 2: The Recording Process

The chart of accounts is a

An _______________ is a record of increases and decreases in specific assets, liabilities, and stockholders' items.

Which of the following statements is incorrect?

An account is an individual accounting record of increases and decreases in specific

Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.

The name given to entering transaction data in the journal is

The ledger accounts should be arranged in

The double-entry system requires that each transaction must be recorded

European companies rely

The complete effect of a transaction on the accounts is disclosed in the journal.

The final step in the recording process is to transfer the journal information to the

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

In recording an accounting transaction in a double-entry system

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts. What is your response to this statement? Be brief, yet concise.

A trial balance may balance even when each of the following occurs except when

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

If a revenue account is credited, the revenue account is increased.

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters