Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true?

Accepted Answer

A)  Transaction analysis is completely different under IFRS and GAAP. 
B)  Most transactions are recorded differently under IFRS and GAAP. 
C)  Transaction analysis is the same under IFRS and GAAP, but some transactions are recorded differently. 
D)  All transactions are recorded the same under IFRS and GAAP. 
A)  Transaction analysis is completely different under IFRS and GAAP. 
B)  Most transactions are recorded differently under IFRS and GAAP. 
C)  Transaction analysis is the same under IFRS and GAAP, but some transactions are recorded differently. 
D)  All transactions are recorded the same under IFRS and GAAP.

Question 3

When three or more accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  compound entry. 
B)  triple entry. 
C)  multiple entry. 
D)  simple entry. 
A)  compound entry. 
B)  triple entry. 
C)  multiple entry. 
D)  simple entry.

Question 4

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 5

Delta72 Company received a cash advance of $700 from a customer. As a result of this event,

Accepted Answer

A)  assets increased by $700. 
B)  stockholders' equity increased by $700. 
C)  liabilities decreased by $700. 
D)  assets and stockholders' equity increased by $700. 
A)  assets increased by $700. 
B)  stockholders' equity increased by $700. 
C)  liabilities decreased by $700. 
D)  assets and stockholders' equity increased by $700.

Question 6

The journal provides a chronological record of transactions.

Accepted Answer

A) True 
 B)False

Question 7

Revenues are a subdivision of retained earnings.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  business documents. 
B)  the Internal Revenue Service. 
C)  the public relations department. 
D)  the SEC. 
A)  business documents. 
B)  the Internal Revenue Service. 
C)  the public relations department. 
D)  the SEC.

Question 9

Beethoven Company provided consulting services and billed the client $3,100. As a result of this event,

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $3,100. 
C)  stockholders' equity increased by $3,100. 
D)  assets and stockholders' equity both increased by $3,100. 
A)  assets remained unchanged. 
B)  assets increased by $3,100. 
C)  stockholders' equity increased by $3,100. 
D)  assets and stockholders' equity both increased by $3,100.

Question 10

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The ledger accounts should be arranged in

Accepted Answer

A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal. 
A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal.

Question 13

An account will have a credit balance if the

Accepted Answer

A)  credits exceed the debits. 
B)  first transaction entered was a credit. 
C)  debits exceed the credits. 
D)  last transaction entered was a credit. 
A)  credits exceed the debits. 
B)  first transaction entered was a credit. 
C)  debits exceed the credits. 
D)  last transaction entered was a credit.

Question 14

For the basic accounting equation to stay in balance, each transaction recorded must

Accepted Answer

A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts. 
A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts.

Question 15

The entire group of accounts maintained by a company is called the

Accepted Answer

A)  chart of accounts. 
B)  general journal. 
C)  general ledger. 
D)  trial balance. 
A)  chart of accounts. 
B)  general journal. 
C)  general ledger. 
D)  trial balance.

Question 16

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 17

Debit and credit can be interpreted to mean increase and decrease, respectively.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the correct sequence of steps in the recording process?

Accepted Answer

A)  Posting, journalizing, analyzing 
B)  Journalizing, analyzing, posting 
C)  Analyzing, posting, journalizing 
D)  Analyzing, journalizing, posting 
A)  Posting, journalizing, analyzing 
B)  Journalizing, analyzing, posting 
C)  Analyzing, posting, journalizing 
D)  Analyzing, journalizing, posting

Question 19

The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

Accepted Answer

A) True 
 B)False

Question 20

On January 14, Edamame Industries purchased supplies of $700 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.

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

Which of the following is true?

When three or more accounts are required in one journal entry, the entry is referred to as a

The standard form of a journal entry has the

Delta72 Company received a cash advance of $700 from a customer. As a result of this event,

The journal provides a chronological record of transactions.

Revenues are a subdivision of retained earnings.

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

Beethoven Company provided consulting services and billed the client $3,100. As a result of this event,

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

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

The ledger accounts should be arranged in

An account will have a credit balance if the

For the basic accounting equation to stay in balance, each transaction recorded must

The entire group of accounts maintained by a company is called the

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

Debit and credit can be interpreted to mean increase and decrease, respectively.

Which of the following is the correct sequence of steps in the recording process?

The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

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

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

Which of the following is true?

When three or more accounts are required in one journal entry, the entry is referred to as a

The standard form of a journal entry has the

Delta72 Company received a cash advance of $700 from a customer. As a result of this event,

The journal provides a chronological record of transactions.

Revenues are a subdivision of retained earnings.

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

Beethoven Company provided consulting services and billed the client $3,100. As a result of this event,

The account titles used in journalizing transactions need not be identical to the account titles in the ledger.

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

The ledger accounts should be arranged in

An account will have a credit balance if the

For the basic accounting equation to stay in balance, each transaction recorded must

The entire group of accounts maintained by a company is called the

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

Debit and credit can be interpreted to mean increase and decrease, respectively.

Which of the following is the correct sequence of steps in the recording process?

The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

On January 14, Edamame Industries purchased supplies of $700 on account. The entry to record the purchase will include

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