Question 1

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance.
LUZON COMPANY
Trial Balance
March 31, 2014

Accepted Answer

LUZON COMPANY
Trial

Question 2

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 3

A trial balance may balance even when each of the following occurs except when

Accepted Answer

A)  a transaction is not journalized. 
B)  a journal entry is posted twice. 
C)  incorrect accounts are used in journalizing. 
D)  a transposition error is made. 
A)  a transaction is not journalized. 
B)  a journal entry is posted twice. 
C)  incorrect accounts are used in journalizing. 
D)  a transposition error is made.

Question 4

Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

Accepted Answer

A) True 
 B)False

Question 5

A chart of accounts usually starts with

Accepted Answer

A)  asset accounts. 
B)  expense accounts. 
C)  liability accounts. 
D)  revenue accounts. 
A)  asset accounts. 
B)  expense accounts. 
C)  liability accounts. 
D)  revenue accounts.

Question 6

Which of the following is false about a journal?

Accepted Answer

A)  It discloses in one place the complete effects of a transaction. 
B)  It provides a chronological record of transactions. 
C)  It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared. 
D)  It keeps in one place all the information about changes in specific account balances. 
A)  It discloses in one place the complete effects of a transaction. 
B)  It provides a chronological record of transactions. 
C)  It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared. 
D)  It keeps in one place all the information about changes in specific account balances.

Question 7

An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect 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 an equity account for $500. 
D)  Debit an equity account for $500. 
A)  Credit an asset account for $500. 
B)  Credit another liability account for $500. 
C)  Credit an equity account for $500. 
D)  Debit an equity account for $500.

Question 8

Posting involves transferring the journalized debits and credits to the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 9

Posting is the process of proving the equality of debits and credits in the trial balance.

Accepted Answer

A) True 
 B)False

Question 10

Credits

Accepted Answer

A)  decrease both assets and liabilities. 
B)  decrease assets and increase liabilities. 
C)  increase both assets and liabilities. 
D)  increase assets and decrease liabilities. 
A)  decrease both assets and liabilities. 
B)  decrease assets and increase liabilities. 
C)  increase both assets and liabilities. 
D)  increase assets and decrease liabilities.

Question 11

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

Accepted Answer

A) True 
 B)False

Question 12

A trial balance

Accepted Answer

A)  will not balance if a correct journal entry is posted twice. 
B)  proves that all transactions have been recorded. 
C)  proves that transactions are recorded correctly. 
D)  is the same under GAAP and IFRS. 
A)  will not balance if a correct journal entry is posted twice. 
B)  proves that all transactions have been recorded. 
C)  proves that transactions are recorded correctly. 
D)  is the same under GAAP and IFRS.

Question 13

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts.
What is your response to this statement? Be brief, yet concise.

Accepted Answer

You have a very good point regarding the

Question 14

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The answer of Match the items below by entering the...

Question 15

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

Accepted Answer

A) True 
 B)False

Question 16

A trial balance will not balance if

Accepted Answer

A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted. 
A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted.

Question 17

A compound journal entry involves

Accepted Answer

A)  two accounts. 
B)  three accounts. 
C)  three or more accounts. 
D)  four or more accounts. 
A)  two accounts. 
B)  three accounts. 
C)  three or more accounts. 
D)  four or more accounts.

Question 18

Assets normally show

Accepted Answer

A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances. 
A)  credit balances. 
B)  debit balances. 
C)  debit and credit balances. 
D)  debit or credit balances.

Question 19

On June 1, 2014 Quang Le buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

Accepted Answer

A)  use two journal entries. 
B)  make a compound entry. 
C)  make a simple entry. 
D)  list the credit entries first, which is proper form for this type of transaction. 
A)  use two journal entries. 
B)  make a compound entry. 
C)  make a simple entry. 
D)  list the credit entries first, which is proper form for this type of transaction.

Question 20

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction.
1. Kevin Diaz invested $40,000 cash in exchange for ordinary shares.
2. Hired an employee to be paid $400 per week, starting tomorrow.
3. Paid two years' rent in advance, $7,200.
4. Paid the worker's weekly salary.
5. Recorded revenue earned and received for the week, $1,500.

Accepted Answer

The answer of Journalize the following business transactions in general...

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance. LUZON COMPANY Trial Balance March 31, 2014

Business documents can provide evidence that a transaction has occurred.

A trial balance may balance even when each of the following occurs except when

Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

A chart of accounts usually starts with

Which of the following is false about a journal?

An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

Posting involves transferring the journalized debits and credits to the statement of financial position.

Posting is the process of proving the equality of debits and credits in the trial balance.

Credits

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

A trial balance

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts. What is your response to this statement? Be brief, yet concise.

Match the items below by entering the appropriate code letter in the space provided.

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

A trial balance will not balance if

A compound journal entry involves

Assets normally show

On June 1, 2014 Quang Le buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

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

Prepare a corrected trial balance for Luzon Company. All accounts should have a normal balance. LUZON COMPANY Trial Balance March 31, 2014

Business documents can provide evidence that a transaction has occurred.

A trial balance may balance even when each of the following occurs except when

Errors on the statement of financial position are called transpositions and errors on the income statement are called irregularities.

A chart of accounts usually starts with

Which of the following is false about a journal?

An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

Posting involves transferring the journalized debits and credits to the statement of financial position.

Posting is the process of proving the equality of debits and credits in the trial balance.

Credits

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

A trial balance

During a study session, a classmate states that it is not necessary to make journal entries and then post them to the ledger. She states that it is sufficient to analyze the transaction and simply record the information in T-accounts. What is your response to this statement? Be brief, yet concise.

Match the items below by entering the appropriate code letter in the space provided.

When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

A trial balance will not balance if

A compound journal entry involves

Assets normally show

On June 1, 2014 Quang Le buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

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