Question 1

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. A

Question 2

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

Accepted Answer

A)  journal, and transfer the information to the ledger accounts. 
B)  ledger, and transfer the information to the journal. 
C)  book of accounts, and transfer the information to the journal. 
D)  book of original entry, and transfer the information to the journal. 
A)  journal, and transfer the information to the ledger accounts. 
B)  ledger, and transfer the information to the journal. 
C)  book of accounts, and transfer the information to the journal. 
D)  book of original entry, and transfer the information to the journal. A

Question 3

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. A

Question 4

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

Question 5

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 6

A three column form of account is so named because it has columns for

Accepted Answer

A)  debit, credit, and account name. 
B)  debit, credit, and reference. 
C)  debit, credit, and balance. 
D)  debit, credit, and date. 
A)  debit, credit, and account name. 
B)  debit, credit, and reference. 
C)  debit, credit, and balance. 
D)  debit, credit, and date.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

Accepted Answer

A) True 
 B)False

Question 9

The usual sequence of steps in the transaction recording process is:

Accepted Answer

A)  journal $\rightarrow$analyze $\rightarrow$ ledger. 
B)  analyze $\rightarrow$ journal $\rightarrow$ ledger. 
C)  journal $\rightarrow$ ledger $\rightarrow$ analyze. 
D)  ledger $\rightarrow$ journal $\rightarrow$ analyze. 
A)  journal $\rightarrow$analyze $\rightarrow$ ledger. 
B)  analyze $\rightarrow$ journal $\rightarrow$ ledger. 
C)  journal $\rightarrow$ ledger $\rightarrow$ analyze. 
D)  ledger $\rightarrow$ journal $\rightarrow$ analyze.

Question 10

Basic steps in the recording process include all of the following except

Accepted Answer

A)  transfer the journal information to the appropriate account in the statement of financial position. 
B)  analyze each transaction for its effect on the accounts. 
C)  enter the transaction information in a journal. 
D)  All of these answer choices are correct. 
A)  transfer the journal information to the appropriate account in the statement of financial position. 
B)  analyze each transaction for its effect on the accounts. 
C)  enter the transaction information in a journal. 
D)  All of these answer choices are correct.

Question 11

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A)  A debit balance in the dividends account 
B)  A credit balance in an expense account 
C)  A credit balance in a liabilities account 
D)  A credit balance in a revenue account 
A)  A debit balance in the dividends account 
B)  A credit balance in an expense account 
C)  A credit balance in a liabilities account 
D)  A credit balance in a revenue account

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The steps in preparing a trial balance include all of the following except

Accepted Answer

A)  listing the account titles and their balances. 
B)  totaling the debit and credit columns. 
C)  proving the equality of the two columns. 
D)  transferring journal amounts to ledger accounts. 
A)  listing the account titles and their balances. 
B)  totaling the debit and credit columns. 
C)  proving the equality of the two columns. 
D)  transferring journal amounts to ledger accounts.

Question 14

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

Accepted Answer

The posting process begins with locating

Question 15

A journal is also known as a book of original entry.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

For the accounts listed below, indicate if the normal balance of the account is a debit or credit.   
10. Notes Payable

Accepted Answer

The answer of For the accounts listed below, indicate if...

Question 19

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

1. Equipment 6000
Accounts Pay

Question 20

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.

A chart of accounts usually starts with

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

A number in the reference column in a general journal indicates

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

A numbering system for a chart of accounts

A three column form of account is so named because it has columns for

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

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

The usual sequence of steps in the transaction recording process is:

Basic steps in the recording process include all of the following except

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

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

The steps in preparing a trial balance include all of the following except

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

A journal is also known as a book of original entry.

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

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

For the accounts listed below, indicate if the normal balance of the account is a debit or credit. 10. Notes Payable

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

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 and Financial Reporting for Contingent Liabilities and Leases

Filters

Exam 2: The Recording Process

A chart of accounts usually starts with

The usual sequence of steps in the recording process is to analyze each transaction, enter the transaction in the

A number in the reference column in a general journal indicates

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

A numbering system for a chart of accounts

A three column form of account is so named because it has columns for

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

Entries that impact the income statement are called simple entries, whereas entries that impact the statement of financial position are called compound entries.

The usual sequence of steps in the transaction recording process is:

Basic steps in the recording process include all of the following except

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

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

The steps in preparing a trial balance include all of the following except

The process of transferring the information in the journal to the general ledger is called posting. Explain the posting process, including the importance of the journal page number and the account numbers.

A journal is also known as a book of original entry.

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

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

For the accounts listed below, indicate if the normal balance of the account is a debit or credit. 10. Notes Payable

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

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 and Financial Reporting for Contingent Liabilities and Leases

Filters