Question 1

The normal balance of an expense is a credit.

Accepted Answer

A) True 
 B)False

Question 2

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is not true?

Accepted Answer

A)  Expenses increase equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease equity. 
D)  Expenses are a negative factor in the computation of net income. 
A)  Expenses increase equity. 
B)  Expenses have normal debit balances. 
C)  Expenses decrease equity. 
D)  Expenses are a negative factor in the computation of net income.

Question 4

Journalize the following transactions for Mercado Company for June 2014, the company's first month of operations. You may omit explanations for the transactions.
1. Purchased equipment on account for $6,000.
2. Billed customers $5,000 for services performed.
3. Made payment of $1,500 on account for equipment purchased earlier in month.
4. Collected $2,400 on customer accounts.

Accepted Answer

The answer of Journalize the following transactions for Mercado Company...

Question 5

Post the following transactions to T-accounts and determine each account's ending balance.

Accepted Answer

The answer of Post the following transactions to T-accounts and...

Question 6

Martin's Mail Service purchased equipment for $4,000. Martin paid $500 in cash and signed a note for the balance. Martin debited the Equipment account, credited Cash and

Accepted Answer

A)  nothing further must be done. 
B)  debited the retained earnings account for $3,500. 
C)  credited another asset account for $500. 
D)  credited a liability account for $3,500. 
A)  nothing further must be done. 
B)  debited the retained earnings account for $3,500. 
C)  credited another asset account for $500. 
D)  credited a liability account for $3,500.

Question 7

A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits.
a. Can the student be successful in the course without an understanding of the rules of debits and credits?
b. Explain the rules of debits and credits in a way that will help him understand them.

Accepted Answer

a. No. Accounting is based on the double

Question 8

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts. 
A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts.

Question 9

Posting

Accepted Answer

A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating. 
A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating.

Question 10

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets. 
A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets.

Question 11

In the first month of operations, the total of the debit entries to the cash account amounted to $700 and the total of the credit entries to the cash account amounted to $500. The cash account has a

Accepted Answer

A)  $500 credit balance. 
B)  $700 debit balance. 
C)  $200 debit balance. 
D)  $200 credit balance. 
A)  $500 credit balance. 
B)  $700 debit balance. 
C)  $200 debit balance. 
D)  $200 credit balance.

Question 12

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Accepted Answer

A) True 
 B)False

Question 13

Under the double-entry system, revenues must always equal expenses.

Accepted Answer

A) True 
 B)False

Question 14

Transactions are entered in the ledger accounts and then transferred to journals.

Accepted Answer

A) True 
 B)False

Question 15

The name given to entering transaction data in the journal is

Accepted Answer

A)  chronicling. 
B)  listing. 
C)  posting. 
D)  journalizing. 
A)  chronicling. 
B)  listing. 
C)  posting. 
D)  journalizing.

Question 16

On June 1, 2014, Alma Inc. reported a cash balance of €12,000. During June, Alma made deposits of €3,000 and made disbursements totalling €16,000. What is the cash balance at the end of June?

Accepted Answer

A)  €1,000 debit balance 
B)  €15,000 debit balance 
C)  €1,000 credit balance 
D)  €4,000 credit balance 
A)  €1,000 debit balance 
B)  €15,000 debit balance 
C)  €1,000 credit balance 
D)  €4,000 credit balance

Question 17

A debit is not the normal balance for which account listed below?

Accepted Answer

A)  Dividends 
B)  Cash 
C)  Accounts Receivable 
D)  Service Revenue 
A)  Dividends 
B)  Cash 
C)  Accounts Receivable 
D)  Service Revenue

Question 18

An account is a part of the financial information system and is described by all except which one of the following?

Accepted Answer

A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title. 
A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title.

Question 19

A journal provides

Accepted Answer

A)  the balances for each account. 
B)  information about a transaction in several different places. 
C)  a list of all accounts used in the business. 
D)  a chronological record of transactions. 
A)  the balances for each account. 
B)  information about a transaction in several different places. 
C)  a list of all accounts used in the business. 
D)  a chronological record of transactions.

Question 20

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

The normal balance of an expense is a credit.

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

Which of the following statements is not true?

Post the following transactions to T-accounts and determine each account's ending balance.

Martin's Mail Service purchased equipment for $4,000. Martin paid $500 in cash and signed a note for the balance. Martin debited the Equipment account, credited Cash and

For the basic accounting equation to stay in balance, each transaction recorded must

Posting

The final step in the recording process is to transfer the journal information to the

In the first month of operations, the total of the debit entries to the cash account amounted to $700 and the total of the credit entries to the cash account amounted to $500. The cash account has a

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Under the double-entry system, revenues must always equal expenses.

Transactions are entered in the ledger accounts and then transferred to journals.

The name given to entering transaction data in the journal is

On June 1, 2014, Alma Inc. reported a cash balance of €12,000. During June, Alma made deposits of €3,000 and made disbursements totalling €16,000. What is the cash balance at the end of June?

A debit is not the normal balance for which account listed below?

An account is a part of the financial information system and is described by all except which one of the following?

A journal provides

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

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 normal balance of an expense is a credit.

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

Which of the following statements is not true?

Post the following transactions to T-accounts and determine each account's ending balance.

Martin's Mail Service purchased equipment for $4,000. Martin paid $500 in cash and signed a note for the balance. Martin debited the Equipment account, credited Cash and

For the basic accounting equation to stay in balance, each transaction recorded must

Posting

The final step in the recording process is to transfer the journal information to the

In the first month of operations, the total of the debit entries to the cash account amounted to $700 and the total of the credit entries to the cash account amounted to $500. The cash account has a

Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

Under the double-entry system, revenues must always equal expenses.

Transactions are entered in the ledger accounts and then transferred to journals.

The name given to entering transaction data in the journal is

On June 1, 2014, Alma Inc. reported a cash balance of €12,000. During June, Alma made deposits of €3,000 and made disbursements totalling €16,000. What is the cash balance at the end of June?

A debit is not the normal balance for which account listed below?

An account is a part of the financial information system and is described by all except which one of the following?

A journal provides

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

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