Question 1

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

Accepted Answer

A)  business documents. 
B)  the taxing authority. 
C)  the public relations department. 
D)  the IASB. 
A)  business documents. 
B)  the taxing authority. 
C)  the public relations department. 
D)  the IASB.

Question 2

An accounting record of the balances of all assets, liabilities, and equity accounts is called

Accepted Answer

A)  compound entry. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts. 
A)  compound entry. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts.

Question 3

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accepted Answer

A) True 
 B)False

Question 4

The recording process occurs

Accepted Answer

A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system. 
A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system.

Question 5

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 6

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 7

In the first month of operations for Widget Industries, the total of the debit entries to the cash account amounted to ₤9,000 (₤5,000 investment by the owners and revenues of ₤4,000). The total of the credit entries to the cash account amounted to ₤5,000 (purchase of equipment ₤2,000 and payment of expenses ₤3,000). At the end of the month, the cash account has a(n)

Accepted Answer

A)  ₤3,000 credit balance. 
B)  ₤3,000 debit balance. 
C)  ₤4,000 debit balance. 
D)  ₤4,000 credit balance. 
A)  ₤3,000 credit balance. 
B)  ₤3,000 debit balance. 
C)  ₤4,000 debit balance. 
D)  ₤4,000 credit balance.

Question 8

The normal balance of an expense is a credit.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of $75,000. Alona had cash revenues of $12,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Accepted Answer

A)  $9,000 credit 
B)  $66,000 debit 
C)  $87,000 debit 
D)  $54,000 credit 
A)  $9,000 credit 
B)  $66,000 debit 
C)  $87,000 debit 
D)  $54,000 credit

Question 12

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

ATTICA COMPANY
Trial

Question 14

John Dough, a fellow employee, wants to understand the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.

Accepted Answer

The basic steps in the recording process

Question 15

After transaction information has been recorded in the journal, it is transferred to the

Accepted Answer

A)  trial balance. 
B)  income statement. 
C)  book of original entry. 
D)  ledger. 
A)  trial balance. 
B)  income statement. 
C)  book of original entry. 
D)  ledger.

Question 16

Identify the accounts to be debited and credited for each of the following transactions.
1. The owners invested $10,000 cash in the business in exchange for ordinary shares.
2. Purchased supplies on account for $1,000.
3. Billed customers $2,000 for services performed.
4. Paid salaries of $900.

Accepted Answer

The answer of Identify the accounts to be debited and...

Question 17

One difference between GAAP and IFRS is that

Accepted Answer

A)  the limitations of a trial balance are different between GAAP and IFRS. 
B)  IFRS uses more fair value measurement than GAAP. 
C)  GAAP uses a different posting process than IFRS. 
D)  IFRS uses accruals accounting concepts and GAAP uses primarily the cash basis of accounting. 
A)  the limitations of a trial balance are different between GAAP and IFRS. 
B)  IFRS uses more fair value measurement than GAAP. 
C)  GAAP uses a different posting process than IFRS. 
D)  IFRS uses accruals accounting concepts and GAAP uses primarily the cash basis of accounting.

Question 18

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

Accepted Answer

An account is an individual accounting r

Question 19

Which of the following journal entries is recorded correctly and in the standard format?

Accepted Answer

The answer of Which of the following journal entries is...

Question 20

Under U.S. GAAP

Accepted Answer

A)  currency signs are generally used in the journal, ledger, trial balance, and financial statements. 
B)  Share Capital-Ordinary is referred to as Retained Earnings. 
C)  the statement of financial position is often called the statement of changes in financial position. 
D)  the rules of debits and credits, and the steps in the recording process are the same as under IFRS. 
A)  currency signs are generally used in the journal, ledger, trial balance, and financial statements. 
B)  Share Capital-Ordinary is referred to as Retained Earnings. 
C)  the statement of financial position is often called the statement of changes in financial position. 
D)  the rules of debits and credits, and the steps in the recording process are the same as under IFRS.

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

An accounting record of the balances of all assets, liabilities, and equity accounts is called

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

The recording process occurs

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

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

The normal balance of an expense is a credit.

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

The right side of an account

During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of $75,000. Alona had cash revenues of $12,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

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

John Dough, a fellow employee, wants to understand the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.

After transaction information has been recorded in the journal, it is transferred to the

Identify the accounts to be debited and credited for each of the following transactions. 1. The owners invested $10,000 cash in the business in exchange for ordinary shares. 2. Purchased supplies on account for $1,000. 3. Billed customers $2,000 for services performed. 4. Paid salaries of $900.

One difference between GAAP and IFRS is that

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

Which of the following journal entries is recorded correctly and in the standard format?

Under U.S. GAAP

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

In recording business transactions, evidence that an accounting transaction has taken place is obtained from

An accounting record of the balances of all assets, liabilities, and equity accounts is called

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

The recording process occurs

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

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

The normal balance of an expense is a credit.

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

The right side of an account

During February 2014, its first month of operations, the owner of Alona Enterprises invested cash of $75,000. Alona had cash revenues of $12,000 and paid expenses of $21,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

The trial balance will not balance when incorrect account titles are used in journalizing or posting.

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

John Dough, a fellow employee, wants to understand the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.

After transaction information has been recorded in the journal, it is transferred to the

Identify the accounts to be debited and credited for each of the following transactions. 1. The owners invested $10,000 cash in the business in exchange for ordinary shares. 2. Purchased supplies on account for $1,000. 3. Billed customers $2,000 for services performed. 4. Paid salaries of $900.

One difference between GAAP and IFRS is that

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance.

Which of the following journal entries is recorded correctly and in the standard format?

Under U.S. GAAP

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