Question 1

The trial balance

Accepted Answer

A)  is a listing of all the accounts and their balances in the order the accounts appear on the statement of financial position. 
B)  has as its primary purpose to prove (check) that all journal entries were made for the period. 
C)  can be used to uncover errors in journalizing and posting. 
D)  is used to prepare the statement of financial position while the general ledger is used to prepare the income statement. 
A)  is a listing of all the accounts and their balances in the order the accounts appear on the statement of financial position. 
B)  has as its primary purpose to prove (check) that all journal entries were made for the period. 
C)  can be used to uncover errors in journalizing and posting. 
D)  is used to prepare the statement of financial position while the general ledger is used to prepare the income statement.

Question 2

A credit balance in a liability account indicates that an error in recording has occurred.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

On August 13, 2014, Merrill Enterprises purchased equipment for $1,500 and supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format?

Accepted Answer

The answer of On August 13, 2014, Merrill Enterprises purchased...

Question 5

During 2014, its first year of operations, Yaspo's Bakery had revenues of $100,000 and expenses of $55,000. The business paid dividends of $30,000. What is the amount of equity at December 31, 2014?

Accepted Answer

A)  $0 
B)  $30,000 debit 
C)  $15,000 credit 
D)  $45,000 credit 
A)  $0 
B)  $30,000 debit 
C)  $15,000 credit 
D)  $45,000 credit

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The chart of accounts used by Ming Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes.
CHART OF ACCOUNTS   -------------------------------------------   -------------------------------------------

Accepted Answer

The answer of The chart of accounts used by Ming...

Question 8

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 9

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 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

On January 14, Ericsson Industries purchased supplies of $500 on account. The entry to record the purchase will include

Accepted Answer

A)  a debit to Supplies and a credit to Accounts Payable. 
B)  a debit to Supplies Expense and a credit to Accounts Receivable. 
C)  a debit to Supplies and a credit to Cash. 
D)  a debit to Accounts Receivable and a credit to Supplies. 
A)  a debit to Supplies and a credit to Accounts Payable. 
B)  a debit to Supplies Expense and a credit to Accounts Receivable. 
C)  a debit to Supplies and a credit to Cash. 
D)  a debit to Accounts Receivable and a credit to Supplies.

Question 12

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 13

The normal balance of all accounts is a debit.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following is not a part of an account?

Accepted Answer

A)  Credit side 
B)  Trial balance 
C)  Debit side 
A)  Credit side 
B)  Trial balance 
C)  Debit side

Question 15

At January 31, 2014, the balance in Bota Inc.'s supplies account was $500. During February, Bota purchased supplies of $600 and used supplies of $800. At the end of February, the balance in the supplies account should be

Accepted Answer

A)  $500 debit. 
B)  $700 credit. 
C)  $1,100 debit. 
D)  $300 debit. 
A)  $500 debit. 
B)  $700 credit. 
C)  $1,100 debit. 
D)  $300 debit.

Question 16

191

Accepted Answer

The answer of 191  ...

Question 17

Revenues are a subdivision of retained earnings.

Accepted Answer

A) True 
 B)False

Question 18

An account consists of

Accepted Answer

A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance. 
A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance.

Question 19

A trial balance is a listing of

Accepted Answer

A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages. 
A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages.

Question 20

A simple journal entry requires only one debit to an account and one credit to an account.

Accepted Answer

A) True 
 B)False

The trial balance

A credit balance in a liability account indicates that an error in recording has occurred.

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

On August 13, 2014, Merrill Enterprises purchased equipment for $1,500 and supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format?

During 2014, its first year of operations, Yaspo's Bakery had revenues of $100,000 and expenses of $55,000. The business paid dividends of $30,000. What is the amount of equity at December 31, 2014?

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

A T-account is

A journal provides

Credits

On January 14, Ericsson Industries purchased supplies of $500 on account. The entry to record the purchase will include

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

The normal balance of all accounts is a debit.

Which one of the following is not a part of an account?

At January 31, 2014, the balance in Bota Inc.'s supplies account was $500. During February, Bota purchased supplies of $600 and used supplies of $800. At the end of February, the balance in the supplies account should be

191

Revenues are a subdivision of retained earnings.

An account consists of

A trial balance is a listing of

A simple journal entry requires only one debit to an account and one credit to an 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 and Financial Reporting for Contingent Liabilities and Leases

Filters

Exam 2: The Recording Process

The trial balance

A credit balance in a liability account indicates that an error in recording has occurred.

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

On August 13, 2014, Merrill Enterprises purchased equipment for $1,500 and supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format?

During 2014, its first year of operations, Yaspo's Bakery had revenues of $100,000 and expenses of $55,000. The business paid dividends of $30,000. What is the amount of equity at December 31, 2014?

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

A T-account is

A journal provides

Credits

On January 14, Ericsson Industries purchased supplies of $500 on account. The entry to record the purchase will include

The trial balance lists accounts and their balances at a given point in time in the order in which they appear on the statement of financial position.

The normal balance of all accounts is a debit.

Which one of the following is not a part of an account?

At January 31, 2014, the balance in Bota Inc.'s supplies account was $500. During February, Bota purchased supplies of $600 and used supplies of $800. At the end of February, the balance in the supplies account should be

191

Revenues are a subdivision of retained earnings.

An account consists of

A trial balance is a listing of

A simple journal entry requires only one debit to an account and one credit to an 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 and Financial Reporting for Contingent Liabilities and Leases

Filters