Question 1

Which of the following correctly identifies normal balances of accounts?

Accepted Answer

The answer of Which of the following correctly identifies normal...

Question 2

The general rules of debit and credit, and the steps in the recording process-the journal, ledger, and chart of accounts-are the same under both GAAP and IFRS.

Accepted Answer

A) True 
 B)False

Question 3

Prepare a trial balance from the ledger accounts of Attica Company as of January 31, 2014.

Accepted Answer

ATTICA COMPANY
Trial

Question 4

The right side of an account

Accepted Answer

A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side. 
A)  is the correct side. 
B)  reflects all transactions for the accounting period. 
C)  shows all the balances of the accounts in the system. 
D)  is the credit side.

Question 5

Which of the following statements is true regarding debits and credits?

Accepted Answer

A)  On the income statement, debits are used to increase account balances, whereas on the statement of financial position, credits are used to increase account balances. 
B)  The basic equation on the statement of financial position is Assets + Liabilities = Equity. 
C)  The rules for debit and credit and the normal balance of Share Capital-Ordinary are the same as for liabilities. 
D)  On the income statement, revenues are increased by debits whereas on the statement of financial position retained earnings is increased by a credit. 
A)  On the income statement, debits are used to increase account balances, whereas on the statement of financial position, credits are used to increase account balances. 
B)  The basic equation on the statement of financial position is Assets + Liabilities = Equity. 
C)  The rules for debit and credit and the normal balance of Share Capital-Ordinary are the same as for liabilities. 
D)  On the income statement, revenues are increased by debits whereas on the statement of financial position retained earnings is increased by a credit.

Question 6

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

At January 1, 2014, LeAnna Industries reported retained earnings of $195,000. During 2014, LeAnna had a net loss of $45,000 and paid dividends of $30,000. At December 31, 2014, the amount of retained earnings is

Accepted Answer

A)  $195,000. 
B)  $210,000. 
C)  $150,000. 
D)  $120,000. 
A)  $195,000. 
B)  $210,000. 
C)  $150,000. 
D)  $120,000.

Question 9

A numbering system for a chart of accounts

Accepted Answer

A)  is prescribed by IFRS. 
B)  is uniform for all businesses. 
C)  usually starts with income statement accounts. 
D)  usually starts with statement of financial position accounts. 
A)  is prescribed by IFRS. 
B)  is uniform for all businesses. 
C)  usually starts with income statement accounts. 
D)  usually starts with statement of financial position accounts.

Question 10

A number in the reference column in a general journal indicates

Accepted Answer

A)  that the entry has been posted to a particular account. 
B)  the page number of the journal. 
C)  the dollar amount of the transaction. 
D)  the date of the transaction. 
A)  that the entry has been posted to a particular account. 
B)  the page number of the journal. 
C)  the dollar amount of the transaction. 
D)  the date of the transaction.

Question 11

Transactions are recorded in alphabetic order in a journal.

Accepted Answer

A) True 
 B)False

Question 12

Pastorek Company purchased equipment for $1,800 cash. As a result of this event,

Accepted Answer

A)  equity decreased by $1,800. 
B)  total assets increased by $1,800. 
C)  total assets remained unchanged. 
D)  total liabilities increased by $1,800. 
A)  equity decreased by $1,800. 
B)  total assets increased by $1,800. 
C)  total assets remained unchanged. 
D)  total liabilities increased by $1,800.

Question 13

Taylor Industries purchased supplies for £1,000. They paid £500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for ₤1,000, a credit to a liability account for ₤500. Which of the following would be the correct way to complete the recording of the transaction?

Accepted Answer

A)  Credit an asset account for ₤500. 
B)  Credit another liability account for ₤500. 
C)  Credit the retained earnings account for ₤500. 
D)  Debit the retained earnings account for ₤500. 
A)  Credit an asset account for ₤500. 
B)  Credit another liability account for ₤500. 
C)  Credit the retained earnings account for ₤500. 
D)  Debit the retained earnings account for ₤500.

Question 14

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Accepted Answer

A) True 
 B)False

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 T-account is

Accepted Answer

A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance. 
A)  a way of depicting the basic form of an account. 
B)  what the computer uses to organize bytes of information. 
C)  a special account used instead of a trial balance. 
D)  used for accounts that have both a debit and credit balance.

Question 17

All accounts reported in the statement of financial position are increased by using debits on the left-hand side of the T-account.

Accepted Answer

A) True 
 B)False

Question 18

When three or more accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  compound entry. 
B)  triple entry. 
C)  multiple entry. 
D)  simple entry. 
A)  compound entry. 
B)  triple entry. 
C)  multiple entry. 
D)  simple entry.

Question 19

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 20

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...

Which of the following correctly identifies normal balances of accounts?

The general rules of debit and credit, and the steps in the recording process-the journal, ledger, and chart of accounts-are the same under both GAAP and IFRS.

Prepare a trial balance from the ledger accounts of Attica Company as of January 31, 2014.

The right side of an account

Which of the following statements is true regarding debits and credits?

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

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

At January 1, 2014, LeAnna Industries reported retained earnings of $195,000. During 2014, LeAnna had a net loss of $45,000 and paid dividends of $30,000. At December 31, 2014, the amount of retained earnings is

A numbering system for a chart of accounts

A number in the reference column in a general journal indicates

Transactions are recorded in alphabetic order in a journal.

Pastorek Company purchased equipment for $1,800 cash. As a result of this event,

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

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

A T-account is

All accounts reported in the statement of financial position are increased by using debits on the left-hand side of the T-account.

When three or more accounts are required in one journal entry, the entry is referred to as a

The normal balance of any account is the

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.

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

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Exam 2: The Recording Process

Which of the following correctly identifies normal balances of accounts?

The general rules of debit and credit, and the steps in the recording process-the journal, ledger, and chart of accounts-are the same under both GAAP and IFRS.

Prepare a trial balance from the ledger accounts of Attica Company as of January 31, 2014.

The right side of an account

Which of the following statements is true regarding debits and credits?

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

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

At January 1, 2014, LeAnna Industries reported retained earnings of $195,000. During 2014, LeAnna had a net loss of $45,000 and paid dividends of $30,000. At December 31, 2014, the amount of retained earnings is

A numbering system for a chart of accounts

A number in the reference column in a general journal indicates

Transactions are recorded in alphabetic order in a journal.

Pastorek Company purchased equipment for $1,800 cash. As a result of this event,

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

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

A T-account is

All accounts reported in the statement of financial position are increased by using debits on the left-hand side of the T-account.

When three or more accounts are required in one journal entry, the entry is referred to as a

The normal balance of any account is the

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.

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