Question 1

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

Accepted Answer

A) True 
 B)False

Question 2

When only two accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  balanced entry. 
B)  simple entry. 
C)  posting. 
D)  nominal entry. 
A)  balanced entry. 
B)  simple entry. 
C)  posting. 
D)  nominal entry.

Question 3

Prepare journal entries for each of the following transactions.
1. Performed services for customers on account €6,000.
2. Purchased €20,000 of equipment on account.
3. Received €3,000 from customers in transaction 1.
4. The company paid dividends of €1,000.

Accepted Answer

The answer of Prepare journal entries for each of the...

Question 4

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 5

A bookkeeping student has come to you for tutoring on the recording process. She is confused about the relationship between the chart of accounts and the ledger. Explain the purpose of the chart of accounts and the general ledger. In your explanation indicate the relationship between these two items as well.

Accepted Answer

The chart of accounts lists all of the a

Question 6

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the statement of financal position accounts.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The final step in the recording process is to

Accepted Answer

A)  analyze each transaction. 
B)  enter the transaction in a journal. 
C)  prepare a trial balance. 
D)  transfer journal information to ledger accounts. 
A)  analyze each transaction. 
B)  enter the transaction in a journal. 
C)  prepare a trial balance. 
D)  transfer journal information to ledger accounts.

Question 9

The chart of accounts lists accounts and the account numbers that identify their location in the ledger starting with the accounts that are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 10

The transactions of Medina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.

Accepted Answer

The answer of The transactions of Medina Information Service are...

Question 11

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation. 
A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation.

Question 12

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

Accepted Answer

A)  $24,500 
B)  $24,000 
C)  $23,500 
D)  $25,000 
A)  $24,500 
B)  $24,000 
C)  $23,500 
D)  $25,000

Question 13

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 14

A compound journal entry requires several debits to one account and several credits to one account.

Accepted Answer

A) True 
 B)False

Question 15

Glynn Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows:   Instructions
Organize the accounts into the order in which they should appear in the ledger of Glynn Company and assign account numbers. Use the following system to assign account numbers.

Accepted Answer

There are several possible cor

Question 16

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought supplies on credit. For the three transactions, at least one of the entries will include a

Accepted Answer

A)  credit to Retained Earnings. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable. 
A)  credit to Retained Earnings. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable.

Question 17

An account is often referred to as a T-account because of the way it is constructed.

Accepted Answer

A) True 
 B)False

Question 18

Accepted Answer

The answer of  ...

Question 19

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Accepted Answer

A) True 
 B)False

Question 20

Posting of journal entries should be done in

Accepted Answer

A)  account number order. 
B)  alphabetical order. 
C)  chronological order. 
D)  dollar amount order. 
A)  account number order. 
B)  alphabetical order. 
C)  chronological order. 
D)  dollar amount order.

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

When only two accounts are required in one journal entry, the entry is referred to as a

Prepare journal entries for each of the following transactions. 1. Performed services for customers on account €6,000. 2. Purchased €20,000 of equipment on account. 3. Received €3,000 from customers in transaction 1. 4. The company paid dividends of €1,000.

The left side of an account is

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the statement of financal position accounts.

The standard form of a journal entry has the

The final step in the recording process is to

The chart of accounts lists accounts and the account numbers that identify their location in the ledger starting with the accounts that are reported on the income statement.

The transactions of Medina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

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

Which of the following is incorrect regarding a trial balance?

A compound journal entry requires several debits to one account and several credits to one account.

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought supplies on credit. For the three transactions, at least one of the entries will include a

An account is often referred to as a T-account because of the way it is constructed.

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Posting of journal entries should be done in

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

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

When only two accounts are required in one journal entry, the entry is referred to as a

Prepare journal entries for each of the following transactions. 1. Performed services for customers on account €6,000. 2. Purchased €20,000 of equipment on account. 3. Received €3,000 from customers in transaction 1. 4. The company paid dividends of €1,000.

The left side of an account is

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the statement of financal position accounts.

The standard form of a journal entry has the

The final step in the recording process is to

The chart of accounts lists accounts and the account numbers that identify their location in the ledger starting with the accounts that are reported on the income statement.

The transactions of Medina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

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

Which of the following is incorrect regarding a trial balance?

A compound journal entry requires several debits to one account and several credits to one account.

On October 3, Josh Antonio, a carpenter, received a cash payment for services previously billed to a client. Josh paid his telephone bill, and he also bought supplies on credit. For the three transactions, at least one of the entries will include a

An account is often referred to as a T-account because of the way it is constructed.

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

Posting of journal entries should be done in

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