Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

Accepted Answer

A)  nothing further must be done. 
B)  debited the retained earnings account for $2,100. 
C)  credited another asset account for $400. 
D)  credited a liability account for $2,100. 
A)  nothing further must be done. 
B)  debited the retained earnings account for $2,100. 
C)  credited another asset account for $400. 
D)  credited a liability account for $2,100. D

Question 4

The normal balance of any account is the

Accepted Answer

A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account. 
A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account.

Question 5

European companies rely

Accepted Answer

A)  less on historical cost and more on fair values than U.S. companies. 
B)  less on fair values and more on historical cost than U.S. companies. 
C)  completely on fair values for financial reporting. 
D)  completely on historical cost for financial reporting. 
A)  less on historical cost and more on fair values than U.S. companies. 
B)  less on fair values and more on historical cost than U.S. companies. 
C)  completely on fair values for financial reporting. 
D)  completely on historical cost for financial reporting.

Question 6

A numbering system for a chart of accounts

Accepted Answer

A)  is prescribed by GAAP. 
B)  is uniform for all businesses. 
C)  usually starts with income statement accounts. 
D)  usually starts with balance sheet accounts. 
A)  is prescribed by GAAP. 
B)  is uniform for all businesses. 
C)  usually starts with income statement accounts. 
D)  usually starts with balance sheet accounts.

Question 7

During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel had cash revenues of $10,000 and paid expenses of $14,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Accepted Answer

A)  $4,000 credit 
B)  $4,000 debit 
C)  $46,000 debit 
D)  $54,000 debit 
A)  $4,000 credit 
B)  $4,000 debit 
C)  $46,000 debit 
D)  $54,000 debit

Question 8

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 9

On June 1, 2015, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Accepted Answer

A)  $3,000 debit balance 
B)  $17,000 debit balance 
C)  $3,000 credit balance 
D)  $2,000 credit balance 
A)  $3,000 debit balance 
B)  $17,000 debit balance 
C)  $3,000 credit balance 
D)  $2,000 credit balance

Question 10

A credit to a liability account

Accepted Answer

A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account. 
A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Customarily, a trial balance is prepared

Accepted Answer

A)  at the end of each day. 
B)  after each journal entry is posted. 
C)  at the end of an accounting period. 
D)  only at the inception of the business. 
A)  at the end of each day. 
B)  after each journal entry is posted. 
C)  at the end of an accounting period. 
D)  only at the inception of the business.

Question 14

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.

Question 15

Transactions are recorded in alphabetic order in a journal.

Accepted Answer

A) True 
 B)False

Question 16

The ledger should be arranged in

Accepted Answer

A)  alphabetical order. 
B)  chronological order. 
C)  dollar amount order. 
D)  financial statement order. 
A)  alphabetical order. 
B)  chronological order. 
C)  dollar amount order. 
D)  financial statement order.

Question 17

A debit is not the normal balance for which of the following?

Accepted Answer

A)  Asset account 
B)  Dividends account 
C)  Expense account 
D)  Common stock account 
A)  Asset account 
B)  Dividends account 
C)  Expense account 
D)  Common stock account

Question 18

A list of accounts and their balances at a given time is called a(n)

Accepted Answer

A)  journal. 
B)  posting. 
C)  trial balance. 
D)  income statement. 
A)  journal. 
B)  posting. 
C)  trial balance. 
D)  income statement.

Question 19

Which of the following are the same under both GAAP and IFRS?

Accepted Answer

A)  The account. 
B)  Debit and credit rules. 
C)  Steps in the recording process. 
D)  All of these answers are correct. 
A)  The account. 
B)  Debit and credit rules. 
C)  Steps in the recording process. 
D)  All of these answers are correct.

Question 20

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

Accepted Answer

A)  the company's bank. 
B)  stockholders' equity. 
C)  ledger accounts. 
D)  financial statements. 
A)  the company's bank. 
B)  stockholders' equity. 
C)  ledger accounts. 
D)  financial statements.

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

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

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

The normal balance of any account is the

European companies rely

A numbering system for a chart of accounts

During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel had cash revenues of $10,000 and paid expenses of $14,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Business documents can provide evidence that a transaction has occurred.

On June 1, 2015, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

A credit to a liability account

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

A journal provides

Customarily, a trial balance is prepared

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

Transactions are recorded in alphabetic order in a journal.

The ledger should be arranged in

A debit is not the normal balance for which of the following?

A list of accounts and their balances at a given time is called a(n)

Which of the following are the same under both GAAP and IFRS?

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

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, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Filters

Exam 2: The Recording Process

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

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

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

The normal balance of any account is the

European companies rely

A numbering system for a chart of accounts

During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel had cash revenues of $10,000 and paid expenses of $14,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Business documents can provide evidence that a transaction has occurred.

On June 1, 2015, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

A credit to a liability account

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

A journal provides

Customarily, a trial balance is prepared

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

Transactions are recorded in alphabetic order in a journal.

The ledger should be arranged in

A debit is not the normal balance for which of the following?

A list of accounts and their balances at a given time is called a(n)

Which of the following are the same under both GAAP and IFRS?

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

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, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Filters