Question 1

Which of the following statements is true regarding simple and compound entries?

Accepted Answer

A)  Simple entries can be prepared by anyone whereas compound entries need to be prepared by a skilled accountant. 
B)  Simple entries are recorded on the income statement whereas compound entries are recorded on the statement of financial position. 
C)  Simple entries involve one account, whereas compound entries involved 2 or more accounts. 
D)  An example of a compound entry would be the purchase of a machine for $400 cash and a $2,000 note payable. 
A)  Simple entries can be prepared by anyone whereas compound entries need to be prepared by a skilled accountant. 
B)  Simple entries are recorded on the income statement whereas compound entries are recorded on the statement of financial position. 
C)  Simple entries involve one account, whereas compound entries involved 2 or more accounts. 
D)  An example of a compound entry would be the purchase of a machine for $400 cash and a $2,000 note payable.

Question 2

At January 31, 2014, the balance in Bota Inc.'s supplies account was $500. During February, Bota purchased supplies of $600 and used supplies of $800. At the end of February, the balance in the supplies account should be

Accepted Answer

A)  $500 debit. 
B)  $700 credit. 
C)  $1,100 debit. 
D)  $300 debit. 
A)  $500 debit. 
B)  $700 credit. 
C)  $1,100 debit. 
D)  $300 debit.

Question 3

Rusthe Company showed the following balances at the end of its first year:   What did Rusthe Company show as total credits on its trial balance?

Accepted Answer

A)  $63,200 
B)  $61,800 
C)  $60,400 
D)  $64,600 
A)  $63,200 
B)  $61,800 
C)  $60,400 
D)  $64,600

Question 4

Match between columns
                        Premises:  An entry that involves three or more accounts.
 Transferring journal entries to ledger accounts.
 The side which increases an account.
 A list of all the accounts used by an enterprise.
 A record of increases and decreases in specific assets, liabilities, and equity items.
 Left side of an account.
 An entry that involves only two accounts.
 A book of original entry.
 A list of accounts and their balances at a given time.
Has a credit normal balance

Accepted Answer

The Answer of Account and Normal account balance and Debit is...

Question 5

Match the basic step in the recording process described by each of the following statements.
A. Analyze each transaction
B. Enter each transaction in a journal
C. Transfer journal information to ledger accounts
____ 1. This step is called posting.
____ 2. Business documents are examined to determine the effects of transactions on the accounts.
____ 3. This step is called journalizing.

Accepted Answer

The answer of Match the basic step in the recording...

Question 6

All business transactions must be entered first in the general ledger.

Accepted Answer

A) True 
 B)False

Question 7

The first step in posting involves

Accepted Answer

A)  entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal. 
B)  writing in the journal the account number to which the debit amount was posted. 
C)  writing in the journal the account number to which the credit amount was posted. 
D)  entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal. 
A)  entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal. 
B)  writing in the journal the account number to which the debit amount was posted. 
C)  writing in the journal the account number to which the credit amount was posted. 
D)  entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.

Question 8

Which of the following is the correct sequence of steps in the recording process?

Accepted Answer

A)  Posting, journalizing, analyzing 
B)  Journalizing, analyzing, posting 
C)  Analyzing, posting, journalizing 
D)  Analyzing, journalizing, posting 
A)  Posting, journalizing, analyzing 
B)  Journalizing, analyzing, posting 
C)  Analyzing, posting, journalizing 
D)  Analyzing, journalizing, posting

Question 9

Identify the accounts to be debited and credited for each of the following transactions.
1. The owners invested $10,000 cash in the business in exchange for ordinary shares.
2. Purchased supplies on account for $1,000.
3. Billed customers $2,000 for services performed.
4. Paid salaries of $900.

Accepted Answer

The answer of Identify the accounts to be debited and...

Question 10

Which of the following accounts is reported in the equity section of the statement of financial position?

Accepted Answer

A)  Dividends 
B)  Share capital-ordinary 
C)  Revenues 
D)  All of these answer choices are correct. 
A)  Dividends 
B)  Share capital-ordinary 
C)  Revenues 
D)  All of these answer choices are correct.

Question 11

A trial balance would only help in detecting which one of the following errors?

Accepted Answer

A)  A transaction that is not journalized. 
B)  A journal entry that is posted twice. 
C)  Offsetting errors are made in recording the transaction. 
D)  A transposition error when transferring the debit side of journal entry to the ledger. 
A)  A transaction that is not journalized. 
B)  A journal entry that is posted twice. 
C)  Offsetting errors are made in recording the transaction. 
D)  A transposition error when transferring the debit side of journal entry to the ledger.

Question 12

Which of the following statements is false concerning use of currency signs?

Accepted Answer

A)  Currency signs do not appear in journals or ledgers. 
B)  Currency signs are generally only shown for the first item in a column and for the column total. 
C)  Currency signs are not typically used in the trial balance. 
D)  All of these answer choices are correct. 
A)  Currency signs do not appear in journals or ledgers. 
B)  Currency signs are generally only shown for the first item in a column and for the column total. 
C)  Currency signs are not typically used in the trial balance. 
D)  All of these answer choices are correct.

Question 13

Management could determine the amounts due from customers by examining which ledger account?

Accepted Answer

A)  Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Supplies 
A)  Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Supplies

Question 14

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 15

Currency signs are typically used only in the trial balance and the financial statements.

Accepted Answer

A) True 
 B)False

Question 16

The recording process occurs

Accepted Answer

A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system. 
A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system.

Question 17

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

Accepted Answer

A)  business documents. 
B)  the taxing authority. 
C)  the public relations department. 
D)  the IASB. 
A)  business documents. 
B)  the taxing authority. 
C)  the public relations department. 
D)  the IASB.

Question 18

A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits.

Accepted Answer

The basic accounting equation is:
Assets

Question 19

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

Accepted Answer

The answer of For each of the following accounts indicate...

Question 20

Compound entries

Accepted Answer

A)  would include an entry to record the purchase of a computer for cash. 
B)  include at least two debits or two credits. 
C)  require that all credits be listed before the debits for entries affecting the statement of financial position. 
D)  should be broken into their component parts and recorded as simple entries. 
A)  would include an entry to record the purchase of a computer for cash. 
B)  include at least two debits or two credits. 
C)  require that all credits be listed before the debits for entries affecting the statement of financial position. 
D)  should be broken into their component parts and recorded as simple entries.

Which of the following statements is true regarding simple and compound entries?

At January 31, 2014, the balance in Bota Inc.'s supplies account was $500. During February, Bota purchased supplies of $600 and used supplies of $800. At the end of February, the balance in the supplies account should be

Rusthe Company showed the following balances at the end of its first year: What did Rusthe Company show as total credits on its trial balance?

All business transactions must be entered first in the general ledger.

The first step in posting involves

Which of the following is the correct sequence of steps in the recording process?

Identify the accounts to be debited and credited for each of the following transactions. 1. The owners invested $10,000 cash in the business in exchange for ordinary shares. 2. Purchased supplies on account for $1,000. 3. Billed customers $2,000 for services performed. 4. Paid salaries of $900.

Which of the following accounts is reported in the equity section of the statement of financial position?

A trial balance would only help in detecting which one of the following errors?

Which of the following statements is false concerning use of currency signs?

Management could determine the amounts due from customers by examining which ledger account?

The normal balance of all accounts is a debit.

Currency signs are typically used only in the trial balance and the financial statements.

The recording process occurs

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

A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits.

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

Compound entries

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, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

Filters

Exam 2: The Recording Process

Which of the following statements is true regarding simple and compound entries?

At January 31, 2014, the balance in Bota Inc.'s supplies account was $500. During February, Bota purchased supplies of $600 and used supplies of $800. At the end of February, the balance in the supplies account should be

Rusthe Company showed the following balances at the end of its first year: What did Rusthe Company show as total credits on its trial balance?

All business transactions must be entered first in the general ledger.

The first step in posting involves

Which of the following is the correct sequence of steps in the recording process?

Identify the accounts to be debited and credited for each of the following transactions. 1. The owners invested $10,000 cash in the business in exchange for ordinary shares. 2. Purchased supplies on account for $1,000. 3. Billed customers $2,000 for services performed. 4. Paid salaries of $900.

Which of the following accounts is reported in the equity section of the statement of financial position?

A trial balance would only help in detecting which one of the following errors?

Which of the following statements is false concerning use of currency signs?

Management could determine the amounts due from customers by examining which ledger account?

The normal balance of all accounts is a debit.

Currency signs are typically used only in the trial balance and the financial statements.

The recording process occurs

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

A fellow classmate is confused about how debits and credits relate to the basic accounting equation. State the basic accounting equation, convert it into the expanded accounting equation, and then explain how it ties into the rules for debits and credits.

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (-).

Compound entries

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, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

Filters