Question 1

Source documents provide objective, verifiable evidence of business transactions.

Accepted Answer

A) True 
 B)False

Question 2

The transaction to record payment for delivery equipment that was purchased on account in the previous month would include

Accepted Answer

A)  debiting Cash and crediting Accounts Receivable. 
B)  debiting Cash and crediting Accounts Payable. 
C)  debiting Accounts Payable and crediting Cash. 
D)  debiting Delivery Equipment and crediting Cash. 
A)  debiting Cash and crediting Accounts Receivable. 
B)  debiting Cash and crediting Accounts Payable. 
C)  debiting Accounts Payable and crediting Cash. 
D)  debiting Delivery Equipment and crediting Cash.

Question 3

After posting journal information to the ledger accounts, a check mark should be entered in the Posting Reference column of the journal to indicate that the transaction item has been posted.

Accepted Answer

A) True 
 B)False

Question 4

Source documents begin the process of entering transactions in the accounting system.

Accepted Answer

A) True 
 B)False

Question 5

Each entry in the journal affects two or more accounts.

Accepted Answer

A) True 
 B)False

Question 6

Posting from the journal to the ledger does NOT involve which of the following steps?

Accepted Answer

A)  Enter the date of each transaction in the accounts. 
B)  Enter the amount of each transaction in the accounts. 
C)  Enter the page of the journal from which each transaction is posted in the accounts. 
D)  Enter the description of the entry. 
A)  Enter the date of each transaction in the accounts. 
B)  Enter the amount of each transaction in the accounts. 
C)  Enter the page of the journal from which each transaction is posted in the accounts. 
D)  Enter the description of the entry.

Question 7

The Posting Reference column of the journal provides a cross-reference between the

Accepted Answer

A)  ledger and accounts. 
B)  journal and ledger. 
C)  ledger and financial statements. 
D)  journal and financial statements. 
A)  ledger and accounts. 
B)  journal and ledger. 
C)  ledger and financial statements. 
D)  journal and financial statements.

Question 8

It is permissible to enter information about a transaction in the ledger accounts first, before entering the information in the journal.

Accepted Answer

A) True 
 B)False

Question 9

A complete set of all the accounts used by a business is known as the general ledger.

Accepted Answer

A) True 
 B)False

Question 10

Copies of sales tickets or sales invoices issued to customers or clients provide information about sales of goods or services.

Accepted Answer

A) True 
 B)False

Question 11

When the trial balance indicates that the ledger is in balance, you can assume there are no errors in the ledger.

Accepted Answer

A) True 
 B)False

Question 12

A list of all the accounts used by a business is called a trial balance.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms with the definitions.
-Drawing a single line through the incorrect account title or amount and writing the correct information directly above the line.

Accepted Answer

A) book of original entry 
B) chart of accounts 
C) compound entry 
D) correcting entry 
E) cross-reference
F)four-column account
G)general ledger
H)journal
I)journalizing
J)posting
K)ruling method
L)slide error
M)source document
N)transposition error
O)trial balance 
A) book of original entry 
B) chart of accounts 
C) compound entry 
D) correcting entry 
E) cross-reference
F)four-column account
G)general ledger
H)journal
I)journalizing
J)posting
K)ruling method
L)slide error
M)source document
N)transposition error
O)trial balance

Question 14

An erasure may suggest that you are hiding something.

Accepted Answer

A) True 
 B)False

Question 15

A separate line in the two-column journal should be used for each account title.

Accepted Answer

A) True 
 B)False

Question 16

A trial balance can only be accurately prepared on the first day of the accounting period before any new transactions have been entered.

Accepted Answer

A) True 
 B)False

Question 17

The flow of financial data through the accounting information system does NOT include

Accepted Answer

A)  analyzing transactions. 
B)  journalizing and posting transactions. 
C)  preparing a trial balance. 
D)  paying an account payable. 
A)  analyzing transactions. 
B)  journalizing and posting transactions. 
C)  preparing a trial balance. 
D)  paying an account payable.

Question 18

Receipt stubs, carbon copies of receipts, cash register tapes, or memos of cash register totals provide information about

Accepted Answer

A)  cash payments. 
B)  cash receipts. 
C)  accounts payable. 
D)  purchases of goods or services. 
A)  cash payments. 
B)  cash receipts. 
C)  accounts payable. 
D)  purchases of goods or services.

Question 19

If the owner of a company invested cash in a business enterprise, the transaction would include

Accepted Answer

A)  debiting Cash and crediting Capital. 
B)  debiting Capital and crediting Cash. 
C)  debiting Cash and crediting Revenue. 
D)  debiting Revenue and crediting Cash. 
A)  debiting Cash and crediting Capital. 
B)  debiting Capital and crediting Cash. 
C)  debiting Cash and crediting Revenue. 
D)  debiting Revenue and crediting Cash.

Question 20

Service revenue received in cash is entered by

Accepted Answer

A)  debiting Cash and crediting Service Revenue. 
B)  debiting Service Revenue and crediting Cash. 
C)  debiting Cash and crediting Accounts Payable. 
D)  debiting Accounts Payable and crediting Cash. 
A)  debiting Cash and crediting Service Revenue. 
B)  debiting Service Revenue and crediting Cash. 
C)  debiting Cash and crediting Accounts Payable. 
D)  debiting Accounts Payable and crediting Cash.

Source documents provide objective, verifiable evidence of business transactions.

The transaction to record payment for delivery equipment that was purchased on account in the previous month would include

After posting journal information to the ledger accounts, a check mark should be entered in the Posting Reference column of the journal to indicate that the transaction item has been posted.

Source documents begin the process of entering transactions in the accounting system.

Each entry in the journal affects two or more accounts.

Posting from the journal to the ledger does NOT involve which of the following steps?

The Posting Reference column of the journal provides a cross-reference between the

It is permissible to enter information about a transaction in the ledger accounts first, before entering the information in the journal.

A complete set of all the accounts used by a business is known as the general ledger.

Copies of sales tickets or sales invoices issued to customers or clients provide information about sales of goods or services.

When the trial balance indicates that the ledger is in balance, you can assume there are no errors in the ledger.

A list of all the accounts used by a business is called a trial balance.

Match the terms with the definitions. -Drawing a single line through the incorrect account title or amount and writing the correct information directly above the line.

An erasure may suggest that you are hiding something.

A separate line in the two-column journal should be used for each account title.

A trial balance can only be accurately prepared on the first day of the accounting period before any new transactions have been entered.

The flow of financial data through the accounting information system does NOT include

Receipt stubs, carbon copies of receipts, cash register tapes, or memos of cash register totals provide information about

If the owner of a company invested cash in a business enterprise, the transaction would include

Service revenue received in cash is entered by

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters

Exam 4: Journalizing and Posting Transactions

Source documents provide objective, verifiable evidence of business transactions.

The transaction to record payment for delivery equipment that was purchased on account in the previous month would include

After posting journal information to the ledger accounts, a check mark should be entered in the Posting Reference column of the journal to indicate that the transaction item has been posted.

Source documents begin the process of entering transactions in the accounting system.

Each entry in the journal affects two or more accounts.

Posting from the journal to the ledger does NOT involve which of the following steps?

The Posting Reference column of the journal provides a cross-reference between the

It is permissible to enter information about a transaction in the ledger accounts first, before entering the information in the journal.

A complete set of all the accounts used by a business is known as the general ledger.

Copies of sales tickets or sales invoices issued to customers or clients provide information about sales of goods or services.

When the trial balance indicates that the ledger is in balance, you can assume there are no errors in the ledger.

A list of all the accounts used by a business is called a trial balance.

Match the terms with the definitions. -Drawing a single line through the incorrect account title or amount and writing the correct information directly above the line.

An erasure may suggest that you are hiding something.

A separate line in the two-column journal should be used for each account title.

A trial balance can only be accurately prepared on the first day of the accounting period before any new transactions have been entered.

The flow of financial data through the accounting information system does NOT include

Receipt stubs, carbon copies of receipts, cash register tapes, or memos of cash register totals provide information about

If the owner of a company invested cash in a business enterprise, the transaction would include

Service revenue received in cash is entered by

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters