Question 1

The first step in posting involves

Accepted Answer

A)  entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal. 
B)  writing in the journal the account number to which the debit amount was posted. 
C)  writing in the journal the account number to which the credit amount was posted. 
D)  entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal. 
A)  entering in the appropriate ledger account the date, journal page, and debit amount shown in the journal. 
B)  writing in the journal the account number to which the debit amount was posted. 
C)  writing in the journal the account number to which the credit amount was posted. 
D)  entering in the appropriate ledger account the date, journal page, and credit amount shown in the journal.

Question 2

The ledger accounts of the Redlands Place Gym at June 30, 2014 are shown below:   Instructions
Prepare a trial balance with the ledger accounts arranged in the proper order. Include the appropriate heading.

Accepted Answer

The answer of The ledger accounts of the Redlands Place...

Question 3

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

Accepted Answer

A)  cash register sales tape. 
B)  bill. 
C)  advertising brochure. 
D)  check. 
A)  cash register sales tape. 
B)  bill. 
C)  advertising brochure. 
D)  check.

Question 4

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense. 
A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense.

Question 5

The expanded accounting equation under GAAP is as follows

Accepted Answer

The answer of The expanded accounting equation under GAAP is...

Question 6

The standard form of a journal entry has the

Accepted Answer

A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin. 
A)  debit account entered first and indented. 
B)  credit account entered first and indented. 
C)  debit account entered first at the extreme left margin. 
D)  credit account entered first at the extreme left margin.

Question 7

For each of the following accounts indicate (a) the type of account (Asset, Liability, Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance.
Example

Accepted Answer

The answer of For each of the following accounts indicate...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

At June 1, 2014, Estrada Industries had an accounts receivable balance of ₤12,000. During the month, the company performed credit services of ₤30,000 and collected accounts receivable of ₤32,000. What is the balance in accounts receivable at June 30, 2014?

Accepted Answer

The balance at the e

Question 10

Root Company provided consulting services and billed the client $2,500. As a result of this event,

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  equity increased by $2,500. 
D)  Both assets and equity increased by $2,500. 
A)  assets remained unchanged. 
B)  assets increased by $2,500. 
C)  equity increased by $2,500. 
D)  Both assets and equity increased by $2,500.

Question 11

The first step in the recording process is to

Accepted Answer

A)  prepare financial statements. 
B)  analyze each transaction for its effect on the accounts. 
C)  post to a journal. 
D)  prepare a trial balance. 
A)  prepare financial statements. 
B)  analyze each transaction for its effect on the accounts. 
C)  post to a journal. 
D)  prepare a trial balance.

Question 12

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...

Question 13

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 14

Which of the following rules is incorrect?

Accepted Answer

A)  Credits decrease the dividends account. 
B)  Debits increase the share capital-ordinary account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts. 
A)  Credits decrease the dividends account. 
B)  Debits increase the share capital-ordinary account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts.

Question 15

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is false?

Accepted Answer

A)  Revenues increase equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits. 
A)  Revenues increase equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits.

Question 17

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 18

Posting of journal entries should be done in

Accepted Answer

A)  account number order. 
B)  alphabetical order. 
C)  chronological order. 
D)  dollar amount order. 
A)  account number order. 
B)  alphabetical order. 
C)  chronological order. 
D)  dollar amount order.

Question 19

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 20

At September 1, 2014, Crews Co. reported equity of ₤204,000. During the month, Crews generated revenues of ₤30,000, incurred expenses of ₤18,000, purchased equipment for ₤7,500 and paid dividends of ₤3,000. What is the amount of equity at September 30, 2014?

Accepted Answer

A)  ₤204,000 
B)  ₤12,000 
C)  ₤205,500 
D)  ₤213,000 
A)  ₤204,000 
B)  ₤12,000 
C)  ₤205,500 
D)  ₤213,000

The first step in posting involves

The ledger accounts of the Redlands Place Gym at June 30, 2014 are shown below: Instructions Prepare a trial balance with the ledger accounts arranged in the proper order. Include the appropriate heading.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

The double-entry system requires that each transaction must be recorded

The expanded accounting equation under GAAP is as follows

The standard form of a journal entry has the

For each of the following accounts indicate (a) the type of account (Asset, Liability, Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance. Example

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

At June 1, 2014, Estrada Industries had an accounts receivable balance of ₤12,000. During the month, the company performed credit services of ₤30,000 and collected accounts receivable of ₤32,000. What is the balance in accounts receivable at June 30, 2014?

Root Company provided consulting services and billed the client $2,500. As a result of this event,

The first step in the recording process is to

The name given to entering transaction data in the journal is

Which of the following rules is incorrect?

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Which of the following statements is false?

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

Posting of journal entries should be done in

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?

At September 1, 2014, Crews Co. reported equity of ₤204,000. During the month, Crews generated revenues of ₤30,000, incurred expenses of ₤18,000, purchased equipment for ₤7,500 and paid dividends of ₤3,000. What is the amount of equity at September 30, 2014?

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 first step in posting involves

The ledger accounts of the Redlands Place Gym at June 30, 2014 are shown below: Instructions Prepare a trial balance with the ledger accounts arranged in the proper order. Include the appropriate heading.

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

The double-entry system requires that each transaction must be recorded

The expanded accounting equation under GAAP is as follows

The standard form of a journal entry has the

For each of the following accounts indicate (a) the type of account (Asset, Liability, Equity, Revenue, Expense), (b) the debit and credit effects, and (c) the normal account balance. Example

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

At June 1, 2014, Estrada Industries had an accounts receivable balance of ₤12,000. During the month, the company performed credit services of ₤30,000 and collected accounts receivable of ₤32,000. What is the balance in accounts receivable at June 30, 2014?

Root Company provided consulting services and billed the client $2,500. As a result of this event,

The first step in the recording process is to

The name given to entering transaction data in the journal is

Which of the following rules is incorrect?

The double-entry system is a logical method for recording transactions and results in equal debits and credits for each transaction.

Which of the following statements is false?

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

Posting of journal entries should be done in

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?

At September 1, 2014, Crews Co. reported equity of ₤204,000. During the month, Crews generated revenues of ₤30,000, incurred expenses of ₤18,000, purchased equipment for ₤7,500 and paid dividends of ₤3,000. What is the amount of equity at September 30, 2014?

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