Question 1

A running balance is maintained in the ledger after each transaction is posted.

Accepted Answer

A) True 
 B)False  True

Question 2

A business's fiscal year that ends at the same time as the slow seasonal period begins is the natural business year.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following entries records the acquisition of office supplies for cash?

Accepted Answer

A) 
$$\begin{array} { | c | r | } 
\hline \text { Office Supplies } & 3,000 \
\hline \text { Cash } & 3,000 \
\hline
\end{array}$$ 
B) 
$$\begin{array} { | r | r | } 
\hline \text { Office Supplies } & 3,000 \
\hline \text { Accounts Payable } & 3,000 \
\hline
\end{array}$$ 
C) 
$\begin{array}{|l|l|}
\hline \text { Equipment } & 3,000 \
\hline \text { Accounts Payable } & 3,000\\hline
\end{array}$ 
D) 
$$\begin{array}{ | l | l | } 
\hline \text { Equipment }& 3,000 \
\hline \text { Accounts Receivable } & 3,000 \
\hline
\end{array}$$ 
A) 
$$\begin{array} { | c | r | } 
\hline \text { Office Supplies } & 3,000 \
\hline \text { Cash } & 3,000 \
\hline
\end{array}$$ 
B) 
$$\begin{array} { | r | r | } 
\hline \text { Office Supplies } & 3,000 \
\hline \text { Accounts Payable } & 3,000 \
\hline
\end{array}$$ 
C) 
$\begin{array}{|l|l|}
\hline \text { Equipment } & 3,000 \
\hline \text { Accounts Payable } & 3,000\\hline
\end{array}$ 
D) 
$$\begin{array}{ | l | l | } 
\hline \text { Equipment }& 3,000 \
\hline \text { Accounts Receivable } & 3,000 \
\hline
\end{array}$$ A

Question 4

Cooper Company began business in June.Prepare the following transactions for June.Omit explanations.
June

Accepted Answer

The answer of Cooper Company began business in June.Prepare the...

Question 5

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee.When the employee returns the amount of the overpayment,Plum Hollow should make which of the following entries?

Accepted Answer

A) Cash,debit;Wages Expense,credit 
B) Wages Payable,debit;Wages Expense,credit 
C) Wages Expense,debit;Cash,credit 
D) Cash,debit;Wages Payable,credit 
A) Cash,debit;Wages Expense,credit 
B) Wages Payable,debit;Wages Expense,credit 
C) Wages Expense,debit;Cash,credit 
D) Cash,debit;Wages Payable,credit

Question 6

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

Accepted Answer

A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57. 
B) The payment of an account payable for $100 was recorded as a debit to Cash,$100,and a credit to Accounts Payable,$100. 
C) The collection of an account was not recorded. 
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000. 
A) The payment of utilities expense was recorded as a debit to Rent Expense for $57 and a credit to Cash for $57. 
B) The payment of an account payable for $100 was recorded as a debit to Cash,$100,and a credit to Accounts Payable,$100. 
C) The collection of an account was not recorded. 
D) The payment of an account payable for $400 was recorded as a debit to Accounts Payable for $400 and a credit to Cash for $4,000.

Question 7

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 expenses 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 expenses first.

Question 8

To correct an error made in the journal (prior to posting in the ledger):

Accepted Answer

A) erase the error and write the correct entry. 
B) write a new journal entry correcting the original entry. 
C) No adjustment is required. 
D) None of the above is correct. 
A) erase the error and write the correct entry. 
B) write a new journal entry correcting the original entry. 
C) No adjustment is required. 
D) None of the above is correct.

Question 9

The trial balance listing is in the same order as the chart of accounts.

Accepted Answer

A) True 
 B)False

Question 10

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 $50 was posted as a debit to Supplies and a credit to Cash.

Accepted Answer

a.Cash is overstated by $1,000;the debit

Question 11

The debit part of the transaction is recorded second in a journal entry.

Accepted Answer

A) True 
 B)False

Question 12

Correctly posting a transaction twice will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 13

A slide is an error that results when zeros have been added or deleted when writing an amount.Example: 10,000 is written as 1,000.

Accepted Answer

A) True 
 B)False

Question 14

A debit to a liability account was posted to an expense account.This would cause:

Accepted Answer

A) assets to be overstated. 
B) liabilities to be overstated. 
C) owner's equity to be overstated. 
D) expenses to be understated. 
A) assets to be overstated. 
B) liabilities to be overstated. 
C) owner's equity to be overstated. 
D) expenses to be understated.

Question 15

When the trial balance includes a debit column total of $10,350 and a credit column total of $10,950,it is probable that:

Accepted Answer

A) a transposition error occurred. 
B) a $300 debit was recorded twice. 
C) a $300 credit was recorded twice. 
D) a $300 debit was recorded as a credit. 
A) a transposition error occurred. 
B) a $300 debit was recorded twice. 
C) a $300 credit was recorded twice. 
D) a $300 debit was recorded as a credit.

Question 16

If the trial balance is in balance,it proves that all transactions were properly journalized.

Accepted Answer

A) True 
 B)False

Question 17

Riley's Book Review billed customers $550.The journal entry to record this transaction is:

Accepted Answer

A) Accounts Receivable,debit $550;Editing Fees,credit $550 
B) Editing Fees,debit $550;Riley,Capital,credit $550 
C) Accounts Payable,debit $550;Editing Fees,credit $550 
D) Cash,debit $550;Riley,Accounts Receivable,credit $550 
A) Accounts Receivable,debit $550;Editing Fees,credit $550 
B) Editing Fees,debit $550;Riley,Capital,credit $550 
C) Accounts Payable,debit $550;Editing Fees,credit $550 
D) Cash,debit $550;Riley,Accounts Receivable,credit $550

Question 18

As Withdrawals increase:

Accepted Answer

A) owner's equity decreases. 
B) owner's equity increases. 
C) Cash increases. 
D) expense increases. 
A) owner's equity decreases. 
B) owner's equity increases. 
C) Cash increases. 
D) expense increases.

Question 19

Business transactions are first recorded in the:

Accepted Answer

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

Question 20

Posting is the process of transferring information from the ledger to the journal.

Accepted Answer

A) True 
 B)False

Exam 3: Beginning the Accounting Cycle

A running balance is maintained in the ledger after each transaction is posted.

A business's fiscal year that ends at the same time as the slow seasonal period begins is the natural business year.

Which of the following entries records the acquisition of office supplies for cash?

Cooper Company began business in June.Prepare the following transactions for June.Omit explanations. June

An overpayment was discovered in computing and paying the wages of a Plum Hollow Country Club employee.When the employee returns the amount of the overpayment,Plum Hollow should make which of the following entries?

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

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

To correct an error made in the journal (prior to posting in the ledger):

The trial balance listing is in the same order as the chart of accounts.

The debit part of the transaction is recorded second in a journal entry.

Correctly posting a transaction twice will cause the trial balance totals to be unequal.

A slide is an error that results when zeros have been added or deleted when writing an amount.Example: 10,000 is written as 1,000.

A debit to a liability account was posted to an expense account.This would cause:

When the trial balance includes a debit column total of $10,350 and a credit column total of $10,950,it is probable that:

If the trial balance is in balance,it proves that all transactions were properly journalized.

Riley's Book Review billed customers $550.The journal entry to record this transaction is:

As Withdrawals increase:

Business transactions are first recorded in the:

Posting is the process of transferring information from the ledger to the journal.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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