Question 1

The journal entry to record a withdrawal by the owner would most commonly include:

Accepted Answer

A) a debit to Wage Expense and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Withdrawals and a credit to Cash. 
D) a debit to Cash and a credit to Wage Expense. 
A) a debit to Wage Expense and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Withdrawals and a credit to Cash. 
D) a debit to Cash and a credit to Wage Expense.

Question 2

Revenue is traditionally recognized in the accounting records when:

Accepted Answer

A) cash is received. 
B) services are rendered. 
C) it is incurred. 
D) None of the answers are correct. 
A) cash is received. 
B) services are rendered. 
C) it is incurred. 
D) None of the answers are correct.

Question 3

The proper format for a journal entry includes all of the following,except:

Accepted Answer

A) the total amounts of debits must equal the total amount of credits. 
B) skip a line between transactions. 
C) the credit portion of the transaction is always first. 
D) listed in chronological order. 
A) the total amounts of debits must equal the total amount of credits. 
B) skip a line between transactions. 
C) the credit portion of the transaction is always first. 
D) listed in chronological order.

Question 4

The general journal entry to record a payment to a creditor would most commonly include:

Accepted Answer

A) a debit to Accounts Payable and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Cash and a credit to Accounts Payable. 
A) a debit to Accounts Payable and a credit to Cash. 
B) a debit to Capital and a credit to Cash. 
C) a debit to Supplies and a credit to Cash. 
D) a debit to Cash and a credit to Accounts Payable.

Question 5

A calendar year is:

Accepted Answer

A) any 12-month period that a business chooses for its accounting year. 
B) the 12-month period beginning with January. 
C) the period for when a interim financial statement would be completed. 
D) All of these answers are correct. 
A) any 12-month period that a business chooses for its accounting year. 
B) the 12-month period beginning with January. 
C) the period for when a interim financial statement would be completed. 
D) All of these answers are correct.

Question 6

Transactions are listed in chronological order in the journal.

Accepted Answer

A) True 
 B)False

Question 7

Post the following to the ledger of Wiley Services.The partial chart of accounts is:
111 Cash
121 Accounts Receivable
211 Accounts Payable
411 Service Fees Earned
 GENERAL JOURNAL
Page 1
$\begin{array}{|l|l|l|c|c|c|}
\hline \text { Date } & & \text { Acct. Titles and Description } & \text { PR } & \text { Debit } & \text { Credit } \
\hline \text { May } & 1 & \text { Accounts Receivable } & & 10,000 & \
\hline & & \text { Service Fees Earned } & & & 10,000 \
\hline & & \text { Billed customer } & & & \\hline\
\hline \text { May } & 5 & \text { Accounts Payable } & & 3,000 & \
\hline & & \text { Cash } & & & 3,000 \
\hline & & \text { Paid amount due } & & & \

\hline
\end{array}$ 
 Cash
Account 111
$\begin{array}{|l|l|c|c|c|c|c|}
\hline\text { Date } & \text { Explanation } & \text { PR } & \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \
&&&&&\text { balance } & \text { Balance }\
\hline\\hline\\hline
\end{array}$ 
 Accounts Receivable
Account 121
$\begin{array}{|l|l|c|c|c|c|c|}
\hline\text { Date } & \text { Explanation } & \text { PR } & \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \
&&&&&\text { balance } & \text { Balance }\
\hline\\hline\\hline
\end{array}$ 
 Accounts Payable
Account 211
$\begin{array}{|l|l|c|c|c|c|c|}
\hline\text { Date } & \text { Explanation } & \text { PR } & \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \
&&&&&\text { balance } & \text { Balance }\
\hline\\hline\\hline
\end{array}$ 
 Service Fees
Account 411
$\begin{array}{|l|l|c|c|c|c|c|}
\hline\text { Date } & \text { Explanation } & \text { PR } & \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \
&&&&&\text { balance } & \text { Balance }\
\hline\\hline\\hline
\end{array}$

Accepted Answer

The answer of Post the following to the ledger of...

Question 8

The entry to record completing a financial lecture and immediately collecting payment from customers would be:

Accepted Answer

A) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Lecture Fees } & 500 \
\hline
\end{array}$$ 
B) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Accounts Payable } & 500 \
\hline
\end{array}$$ 
C) 
$$\begin{array} { | c | c | } 
\hline \text { Lecture Fees } & 500 \
\hline \text { Cash } &500 \
\hline
\end{array}$$ 
D) 
$$\begin{array} { | c | c | } 
\hline \text { Lecture Fees } & 500 \
\hline \text { Accounts Payable } & 500 \
\hline
\end{array}$$ 
A) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Lecture Fees } & 500 \
\hline
\end{array}$$ 
B) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Accounts Payable } & 500 \
\hline
\end{array}$$ 
C) 
$$\begin{array} { | c | c | } 
\hline \text { Lecture Fees } & 500 \
\hline \text { Cash } &500 \
\hline
\end{array}$$ 
D) 
$$\begin{array} { | c | c | } 
\hline \text { Lecture Fees } & 500 \
\hline \text { Accounts Payable } & 500 \
\hline
\end{array}$$

Question 9

If you debit Prepaid Insurance,you most likely will:

Accepted Answer

A) credit Fees Earned. 
B) credit capital. 
C) credit Insurance Expense. 
D) credit Cash. 
A) credit Fees Earned. 
B) credit capital. 
C) credit Insurance Expense. 
D) credit Cash.

Question 10

The general ledger:

Accepted Answer

A) lists the customer names. 
B) is the book of final entry. 
C) lists the transactions in chronological order. 
D) is before the general journal. 
A) lists the customer names. 
B) is the book of final entry. 
C) lists the transactions in chronological order. 
D) is before the general journal.

Question 11

The process of initially recording business transactions in a journal is:

Accepted Answer

A) sliding. 
B) posting. 
C) journalizing. 
D) kiting. 
A) sliding. 
B) posting. 
C) journalizing. 
D) kiting.

Question 12

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

Accepted Answer

A) expenses to be overstated. 
B) revenue to be overstated. 
C) expenses to be understated. 
D) None of the above 
A) expenses to be overstated. 
B) revenue to be overstated. 
C) expenses to be understated. 
D) None of the above

Question 13

If Accounts Payable has been credited,it is most likely that:

Accepted Answer

A) a collection from a customer was made. 
B) a service was provided on account. 
C) the company made a purchase on account. 
D) None of these is possible. 
A) a collection from a customer was made. 
B) a service was provided on account. 
C) the company made a purchase on account. 
D) None of these is possible.

Question 14

The trial balance proves the equality of debits and credits.

Accepted Answer

A) True 
 B)False

Question 15

The general journal entry to record the purchase of an asset for cash 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 16

Antonio's catered a reception.The total price was $500.The customer paid half of the fee in cash and placed the remainder on account.The journal entry to record this transaction is:

Accepted Answer

A) 
$$\begin{array} { | c | l | } 
\hline \text { Cash } & 250 \
\hline \text { Accounts Receivable } & 250 \
\hline \text { Catering Service Fees } & 500\
\hline
\end{array}$$ 
B) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Accounts Receivable } & 500 \
\hline
\end{array}$$ 
C) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Catering Service Fees } & 500 \
\hline
\end{array}$$ 
D) 
$$\begin{array} { | r | r | } 
\hline  \text { Cash }&{ 500 } \
\hline \text { Accounts Receivable } & 250 \
\hline \text { Catering Service Fees } & 250 \
\hline
\end{array}$$ 
A) 
$$\begin{array} { | c | l | } 
\hline \text { Cash } & 250 \
\hline \text { Accounts Receivable } & 250 \
\hline \text { Catering Service Fees } & 500\
\hline
\end{array}$$ 
B) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Accounts Receivable } & 500 \
\hline
\end{array}$$ 
C) 
$$\begin{array}{ | l | l | } 
\hline \text { Cash }& 500 \
\hline \text { Catering Service Fees } & 500 \
\hline
\end{array}$$ 
D) 
$$\begin{array} { | r | r | } 
\hline  \text { Cash }&{ 500 } \
\hline \text { Accounts Receivable } & 250 \
\hline \text { Catering Service Fees } & 250 \
\hline
\end{array}$$

Question 17

The process of transferring the data from the journal to the ledger accounts is called posting.

Accepted Answer

A) True 
 B)False

Question 18

Complete the following entries by using a "debit" or "credit."
a)Received payment from a customer.Cash would have a: ________
b)Owner makes an investment of equipment.Capital would have a: ________
c)Paid rent in advance.Prepaid Rent would have a: ________
d)Billed a customer for services rendered.Revenue would have a: ________
e)Paid an advertising bill received last month.Cash would have a: ________
f)Owner withdrew cash.Withdrawals would have a: ________

Accepted Answer

a)Debit
b)Credit
c)D

Question 19

In preparing the trial balance of the K&L's Bridal Service,the Withdrawals account (which had a normal balance in the general ledger)was listed as a credit for $400.What will be the difference between the debit and credit sides of the trial balance?

Accepted Answer

A) $150 
B) $200 
C) $300 
D) $800 
A) $150 
B) $200 
C) $300 
D) $800

Question 20

The time period for which an income statement is prepared is called the accounting period.

Accepted Answer

A) True 
 B)False

Exam 3: Beginning the Accounting Cycle

The journal entry to record a withdrawal by the owner would most commonly include:

Revenue is traditionally recognized in the accounting records when:

The proper format for a journal entry includes all of the following,except:

The general journal entry to record a payment to a creditor would most commonly include:

A calendar year is:

Transactions are listed in chronological order in the journal.

The entry to record completing a financial lecture and immediately collecting payment from customers would be:

If you debit Prepaid Insurance,you most likely will:

The general ledger:

The process of initially recording business transactions in a journal is:

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

If Accounts Payable has been credited,it is most likely that:

The trial balance proves the equality of debits and credits.

The general journal entry to record the purchase of an asset for cash would include:

Antonio's catered a reception.The total price was $500.The customer paid half of the fee in cash and placed the remainder on account.The journal entry to record this transaction is:

The process of transferring the data from the journal to the ledger accounts is called posting.

In preparing the trial balance of the K&L's Bridal Service,the Withdrawals account (which had a normal balance in the general ledger)was listed as a credit for $400.What will be the difference between the debit and credit sides of the trial balance?

The time period for which an income statement is prepared is called the accounting period.

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

Filters