Question 1

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 2

A trial balance would only help in detecting which one of the following errors?

Accepted Answer

A)  A transaction that is not journalized 
B)  A journal entry that is posted twice 
C)  Offsetting errors are made in recording the transaction 
D)  A transposition error when transferring the debit side of journal entry to the ledger 
A)  A transaction that is not journalized 
B)  A journal entry that is posted twice 
C)  Offsetting errors are made in recording the transaction 
D)  A transposition error when transferring the debit side of journal entry to the ledger

Question 3

Which one of the following represents the expanded basic accounting equation?

Accepted Answer

A)  Assets = Liabilities + Common stock + Retained Earnings + Dividends - Revenues - Expenses. 
B)  Assets + Dividends + Expenses = Liabilities + Common stock + Retained Earnings + Revenues. 
C)  Assets - Liabilities - Dividends = Common stock + Retained Earnings + Revenues - Expenses. 
D)  Assets = Revenues + Expenses - Liabilities. 
A)  Assets = Liabilities + Common stock + Retained Earnings + Dividends - Revenues - Expenses. 
B)  Assets + Dividends + Expenses = Liabilities + Common stock + Retained Earnings + Revenues. 
C)  Assets - Liabilities - Dividends = Common stock + Retained Earnings + Revenues - Expenses. 
D)  Assets = Revenues + Expenses - Liabilities.

Question 4

All business transactions must be entered first in the general ledger.

Accepted Answer

A) True 
 B)False

Question 5

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

Accepted Answer

A) True 
 B)False

Question 6

The recording process occurs

Accepted Answer

A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system. 
A)  once a year. 
B)  once a month. 
C)  repeatedly during the accounting period. 
D)  infrequently in a manual accounting system.

Question 7

Which of the following is incorrect regarding a trial balance?

Accepted Answer

A)  It proves that the debits equal the credits after posting. 
B)  It proves that the company has recorded all transactions. 
C)  A trial balance uncovers errors in journalizing and posting. 
D)  A trial balance is useful in the preparation of financial statements. 
A)  It proves that the debits equal the credits after posting. 
B)  It proves that the company has recorded all transactions. 
C)  A trial balance uncovers errors in journalizing and posting. 
D)  A trial balance is useful in the preparation of financial statements.

Question 8

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 9

Another name for journal is

Accepted Answer

A)  listing. 
B)  book of original entry. 
C)  book of accounts. 
D)  book of source documents. 
A)  listing. 
B)  book of original entry. 
C)  book of accounts. 
D)  book of source documents.

Question 10

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 11

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Accepted Answer

A) True 
 B)False

Question 12

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 13

A trial balance will not balance if

Accepted Answer

A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted. 
A)  a journal entry is posted twice. 
B)  a wrong amount is used in journalizing. 
C)  incorrect account titles are used in journalizing. 
D)  a journal entry is only partially posted.

Question 14

A three column form of account is so named because it has columns for

Accepted Answer

A)  debit, credit, and account name. 
B)  debit, credit, and reference. 
C)  debit, credit, and balance. 
D)  debit, credit, and date. 
A)  debit, credit, and account name. 
B)  debit, credit, and reference. 
C)  debit, credit, and balance. 
D)  debit, credit, and date.

Question 15

An account consists of

Accepted Answer

A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance. 
A)  a title, a debit balance, and a credit balance. 
B)  a title, a left side, and a debit balance. 
C)  a title, a debit side, and a credit side. 
D)  a title, a right side, and a debit balance.

Question 16

The best interpretation of the word credit is the

Accepted Answer

A)  offset side of an account. 
B)  increase side of an account. 
C)  right side of an account. 
D)  decrease side of an account. 
A)  offset side of an account. 
B)  increase side of an account. 
C)  right side of an account. 
D)  decrease side of an account.

Question 17

During 2015, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $35,000. The business paid dividends of $20,000. What is the amount of stockholders' equity at December 31, 2015?

Accepted Answer

A)  $0 
B)  $5,000 credit 
C)  $25,000 credit 
D)  $20,000 debit 
A)  $0 
B)  $5,000 credit 
C)  $25,000 credit 
D)  $20,000 debit

Question 18

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 19

The final step in the recording process is to

Accepted Answer

A)  analyze each transaction. 
B)  enter the transaction in a journal. 
C)  prepare a trial balance. 
D)  transfer journal information to ledger accounts. 
A)  analyze each transaction. 
B)  enter the transaction in a journal. 
C)  prepare a trial balance. 
D)  transfer journal information to ledger accounts.

Question 20

A trial balance is a listing of

Accepted Answer

A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages. 
A)  transactions in a journal. 
B)  the chart of accounts. 
C)  general ledger accounts and balances. 
D)  the totals from the journal pages.

Posting of journal entries should be done in

A trial balance would only help in detecting which one of the following errors?

Which one of the following represents the expanded basic accounting equation?

All business transactions must be entered first in the general ledger.

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

The recording process occurs

Which of the following is incorrect regarding a trial balance?

The first step in posting involves

Another name for journal is

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

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

A trial balance will not balance if

A three column form of account is so named because it has columns for

An account consists of

The best interpretation of the word credit is the

During 2015, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $35,000. The business paid dividends of $20,000. What is the amount of stockholders' equity at December 31, 2015?

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

The final step in the recording process is to

A trial balance is a listing of

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

Posting of journal entries should be done in

A trial balance would only help in detecting which one of the following errors?

Which one of the following represents the expanded basic accounting equation?

All business transactions must be entered first in the general ledger.

The number and types of accounts used by different business enterprises are the same if generally accepted accounting principles are being followed by the enterprises.

The recording process occurs

Which of the following is incorrect regarding a trial balance?

The first step in posting involves

Another name for journal is

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

The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

A trial balance will not balance if

A three column form of account is so named because it has columns for

An account consists of

The best interpretation of the word credit is the

During 2015, its first year of operations, Neko's Bakery had revenues of $60,000 and expenses of $35,000. The business paid dividends of $20,000. What is the amount of stockholders' equity at December 31, 2015?

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

The final step in the recording process is to

A trial balance is a listing of

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