Question 1

Which of the following is incorrect regarding a trial balance?

Accepted Answer

A)  It proves that the debits equal the credits after posting. 
B)  It proves that the company has recorded all transactions. 
C)  A trial balance uncovers errors in journalizing and posting. 
D)  A trial balance is useful in the preparation of financial statements. 
A)  It proves that the debits equal the credits after posting. 
B)  It proves that the company has recorded all transactions. 
C)  A trial balance uncovers errors in journalizing and posting. 
D)  A trial balance is useful in the preparation of financial statements.

Question 2

The double-entry accounting system is the basis of accounting systems

Accepted Answer

A)  worldwide. 
B)  worldwide, except for the U.S. 
C)  in the U.S. only 
D)  neither internationally nor in the U.S.
IFRS. 
A)  worldwide. 
B)  worldwide, except for the U.S. 
C)  in the U.S. only 
D)  neither internationally nor in the U.S.
IFRS.

Question 3

A new account is opened for each transaction entered into by a business firm.

Accepted Answer

A) True 
 B)False

Question 4

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accepted Answer

A) True 
 B)False

Question 5

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

Accepted Answer

A) True 
 B)False

Question 6

The explanation column of the general ledger

Accepted Answer

A)  is completed without exception. 
B)  is nonexistent. 
C)  is used infrequently. 
D)  shows account titles. 
A)  is completed without exception. 
B)  is nonexistent. 
C)  is used infrequently. 
D)  shows account titles.

Question 7

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

Accepted Answer

A)  business documents. 
B)  the Internal Revenue Service. 
C)  the public relations department. 
D)  the SEC. 
A)  business documents. 
B)  the Internal Revenue Service. 
C)  the public relations department. 
D)  the SEC.

Question 8

At June 1, 2018, Coquehcot Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $30,000 and collected accounts receivable of $22,000. What is the balance in accounts receivable at June 30, 2018?

Accepted Answer

The balance at the e

Question 9

Match between columns
                        Premises: Business documents are examined to determine the effects of transactions on the accounts.
This step is called posting.
This step is called journalizing

Accepted Answer

The Answer of Enter each transaction in a journal and is...

Question 10

If a company has overdrawn its bank balance, then

Accepted Answer

A)  its cash account will show a debit balance. 
B)  its cash account will show a credit balance. 
C)  the cash account debits will exceed the cash account credits. 
D)  it cannot be detected by observing the balance of the cash account. 
A)  its cash account will show a debit balance. 
B)  its cash account will show a credit balance. 
C)  the cash account debits will exceed the cash account credits. 
D)  it cannot be detected by observing the balance of the cash account.

Question 11

A credit to a liability account

Accepted Answer

A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account. 
A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account.

Question 12

The normal balance of any account is the

Accepted Answer

A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account. 
A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account.

Question 13

A numbering system for a chart of accounts

Accepted Answer

A)  is prescribed by GAAP. 
B)  is uniform for all businesses. 
C)  usually starts with income statement accounts. 
D)  usually starts with balance sheet accounts. 
A)  is prescribed by GAAP. 
B)  is uniform for all businesses. 
C)  usually starts with income statement accounts. 
D)  usually starts with balance sheet accounts.

Question 14

The process of entering an amount on the left side of an account is called ____________ the account, and making an entry on the right side is called _________________ the account.

Accepted Answer

The answer of The process of entering an amount on...

Question 15

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 16

A trial balance is a listing of

Accepted Answer

A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages. 
A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages.

Question 17

The standard form of a journal entry has the

Accepted Answer

A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin. 
A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin.

Question 18

The left side of an account is

Accepted Answer

A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account. 
A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account.

Question 19

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Accepted Answer

The answer of Under a double-entry system, show how the...

Question 20

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

Accepted Answer

A)  cash register sales tape. 
B)  bill. 
C)  advertising brochure. 
D)  check. 
A)  cash register sales tape. 
B)  bill. 
C)  advertising brochure. 
D)  check.

Which of the following is incorrect regarding a trial balance?

The double-entry accounting system is the basis of accounting systems

A new account is opened for each transaction entered into by a business firm.

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

The explanation column of the general ledger

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

At June 1, 2018, Coquehcot Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $30,000 and collected accounts receivable of $22,000. What is the balance in accounts receivable at June 30, 2018?

If a company has overdrawn its bank balance, then

A credit to a liability account

The normal balance of any account is the

A numbering system for a chart of accounts

The process of entering an amount on the left side of an account is called the account, and making an entry on the right side is called _____ the account.

The recording process becomes more efficient and informative if all transactions are recorded in one account.

A trial balance is a listing of

The standard form of a journal entry has the

The left side of an account is

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

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

Which of the following is incorrect regarding a trial balance?

The double-entry accounting system is the basis of accounting systems

A new account is opened for each transaction entered into by a business firm.

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

The explanation column of the general ledger

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

At June 1, 2018, Coquehcot Industries had an accounts receivable balance of $12,000. During the month, the company performed credit services of $30,000 and collected accounts receivable of $22,000. What is the balance in accounts receivable at June 30, 2018?

If a company has overdrawn its bank balance, then

A credit to a liability account

The normal balance of any account is the

A numbering system for a chart of accounts

The process of entering an amount on the left side of an account is called ____________ the account, and making an entry on the right side is called _________________ the account.

The recording process becomes more efficient and informative if all transactions are recorded in one account.

A trial balance is a listing of

The standard form of a journal entry has the

The left side of an account is

Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

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

The process of entering an amount on the left side of an account is called the account, and making an entry on the right side is called _____ the account.