Question 1

When two accounts are required in one journal entry, the entry is referred to as a

Accepted Answer

A)  balanced entry. 
B)  simple entry. 
C)  posting. 
D)  nominal entry. 
A)  balanced entry. 
B)  simple entry. 
C)  posting. 
D)  nominal entry.

Question 2

Radio Moscow Industries purchased supplies for $1,000. They paid $400 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,000, a credit to a liability account for $600. Which of the following would be the correct way to complete the recording of the transaction?

Accepted Answer

A)  Credit an asset account for $400. 
B)  Credit another liability account for $400. 
C)  Credit the retained earnings account for $400. 
D)  Debit the retained earnings account for $400. 
A)  Credit an asset account for $400. 
B)  Credit another liability account for $400. 
C)  Credit the retained earnings account for $400. 
D)  Debit the retained earnings account for $400.

Question 3

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 4

The chart of accounts is a

Accepted Answer

A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the ledger. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process. 
A)  list of accounts and their balances at a given time. 
B)  device used to prove the mathematical accuracy of the ledger. 
C)  listing of the accounts and the account numbers which identify their location in the ledger. 
D)  required step in the recording process.

Question 5

The procedure of transferring journal entries to the ledger accounts is called

Accepted Answer

A)  journalizing. 
B)  analyzing. 
C)  reporting. 
D)  posting. 
A)  journalizing. 
B)  analyzing. 
C)  reporting. 
D)  posting.

Question 6

At January 31, 2015, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

Accepted Answer

A)  $525 debit. 
B)  $975 debit. 
C)  $525 credit. 
D)  $775 debit. 
A)  $525 debit. 
B)  $975 debit. 
C)  $525 credit. 
D)  $775 debit.

Question 7

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

Accepted Answer

A)  Nothing further must be done. 
B)  Debit a Stockholders' equity account for $700. 
C)  Debit another asset account for $700. 
D)  Credit a different asset account for $700. 
A)  Nothing further must be done. 
B)  Debit a Stockholders' equity account for $700. 
C)  Debit another asset account for $700. 
D)  Credit a different asset account for $700.

Question 8

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

Accepted Answer

A)  The journal. 
B)  The ledger. 
C)  The chart of accounts. 
D)  All of these answers are correct. 
A)  The journal. 
B)  The ledger. 
C)  The chart of accounts. 
D)  All of these answers are correct.

Question 9

When a company distributes dividends

Accepted Answer

A)  it doesn't have to be cash, it could be another asset. 
B)  the dividends account will be increased with a credit. 
C)  the retained earnings account will be directly increased with a debit. 
D)  the dividends account will be decreased with a debit. 
A)  it doesn't have to be cash, it could be another asset. 
B)  the dividends account will be increased with a credit. 
C)  the retained earnings account will be directly increased with a debit. 
D)  the dividends account will be decreased with a debit.

Question 10

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

Accepted Answer

A)  stockholders' equity decreased by $2,600. 
B)  total assets increased by $2,600. 
C)  total assets remained unchanged. 
D)  stockholders' equity decreased and total assets increased by $2,600. 
A)  stockholders' equity decreased by $2,600. 
B)  total assets increased by $2,600. 
C)  total assets remained unchanged. 
D)  stockholders' equity decreased and total assets increased by $2,600.

Question 11

The normal balance of an expense is a credit.

Accepted Answer

A) True 
 B)False

Question 12

Management could determine the amounts due from customers by examining which ledger account?

Accepted Answer

A)  Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Supplies 
A)  Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Supplies

Question 13

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

Accepted Answer

A)  A debit balance in the dividends account 
B)  A credit balance in an expense account 
C)  A credit balance in a liabilities account 
D)  A credit balance in a revenue account 
A)  A debit balance in the dividends account 
B)  A credit balance in an expense account 
C)  A credit balance in a liabilities account 
D)  A credit balance in a revenue account

Question 14

The steps in preparing a trial balance include all of the following except

Accepted Answer

A)  listing the account titles and their balances. 
B)  totaling the debit and credit columns. 
C)  proving the equality of the two columns. 
D)  transferring journal amounts to ledger accounts. 
A)  listing the account titles and their balances. 
B)  totaling the debit and credit columns. 
C)  proving the equality of the two columns. 
D)  transferring journal amounts to ledger accounts.

Question 15

Which of the following rules is incorrect?

Accepted Answer

A)  Credits decrease the dividends account. 
B)  Debits increase the common stock account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts. 
A)  Credits decrease the dividends account. 
B)  Debits increase the common stock account. 
C)  Credits increase revenue accounts. 
D)  Debits decrease liability accounts.

Question 16

The recording process becomes more efficient and informative if all transactions are recorded in one account.

Accepted Answer

A) True 
 B)False

Question 17

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 18

An account is a part of the financial information system and is described by all except which one of the following?

Accepted Answer

A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title. 
A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title.

Question 19

A number in the reference column in a general journal indicates

Accepted Answer

A)  that the entry has been posted to a particular account. 
B)  the page number of the journal. 
C)  the dollar amount of the transaction. 
D)  the date of the transaction. 
A)  that the entry has been posted to a particular account. 
B)  the page number of the journal. 
C)  the dollar amount of the transaction. 
D)  the date of the transaction.

Question 20

The Dividends account

Accepted Answer

A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of retained earnings. 
A)  appears on the income statement along with the expenses of the business. 
B)  must show transactions every accounting period. 
C)  is increased with debits and decreased with credits. 
D)  is not a proper subdivision of retained earnings.

When two accounts are required in one journal entry, the entry is referred to as a

The right side of an account

The chart of accounts is a

The procedure of transferring journal entries to the ledger accounts is called

At January 31, 2015, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

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

When a company distributes dividends

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

The normal balance of an expense is a credit.

Management could determine the amounts due from customers by examining which ledger account?

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

The steps in preparing a trial balance include all of the following except

Which of the following rules is incorrect?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

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

An account is a part of the financial information system and is described by all except which one of the following?

A number in the reference column in a general journal indicates

The Dividends account

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

When two accounts are required in one journal entry, the entry is referred to as a

The right side of an account

The chart of accounts is a

The procedure of transferring journal entries to the ledger accounts is called

At January 31, 2015, the balance in Aislers Inc.'s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be

An accountant has debited an asset account for $1,200 and credited a liability account for $500. What can be done to complete the recording of the transaction?

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

When a company distributes dividends

Camper Van Company purchased equipment for $2,600 cash. As a result of this event,

The normal balance of an expense is a credit.

Management could determine the amounts due from customers by examining which ledger account?

An awareness of the normal balances of accounts would help you spot which of the following as an error in recording?

The steps in preparing a trial balance include all of the following except

Which of the following rules is incorrect?

The recording process becomes more efficient and informative if all transactions are recorded in one account.

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

An account is a part of the financial information system and is described by all except which one of the following?

A number in the reference column in a general journal indicates

The Dividends account

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