Question 1

On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

Accepted Answer

A)  use two journal entries. 
B)  make a compound entry. 
C)  make a simple entry. 
D)  list the credit entries first, which is proper form for this type of transaction. 
A)  use two journal entries. 
B)  make a compound entry. 
C)  make a simple entry. 
D)  list the credit entries first, which is proper form for this type of transaction.

Question 2

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

Accepted Answer

A)  credit to Retained Earnings. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable. 
A)  credit to Retained Earnings. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable.

Question 3

The final step in the recording process is to transfer the journal information to the

Accepted Answer

A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets. 
A)  trial balance. 
B)  financial statements. 
C)  ledger. 
D)  file cabinets.

Question 4

Electrelane Company showed the following balances at the end of its first year: $$\begin{array} { l r } 
\text { Cash } & \$ 4,000 \
\text { Prepaid insurance } & 7,000 \
\text { Accounts receivable } & 5,000 \
\text { Accounts payable } & 4,000 \
\text { Notes payable } & 6,000 \
\text { Common stock } & 2,000 \
\text { Dividends } & 1,000 \
\text { Revenues } & 32,000 \
\text { Expenses } & 25,000
\end{array}$$ What did Electrelene Company show as total credits on its trial balance?

Accepted Answer

A)  $9,000 
B)  $44,000 
C)  $45,000 
D)  $49,000 
A)  $9,000 
B)  $44,000 
C)  $45,000 
D)  $49,000

Question 5

In the first month of operations for Gallowsbird Industries, the total of the debit entries to the cash account amounted to $36,000 ($16,000 investment by stockholders and revenues of $20,000). The total of the credit entries to the cash account amounted to $22,000 (purchase of equipment $8,000 and payment of expenses $14,000). At the end of the month, the cash account has a(n)

Accepted Answer

A)  $6,000 credit balance. 
B)  $6,000 debit balance. 
C)  $14,000 debit balance. 
D)  $14,000 credit balance. 
A)  $6,000 credit balance. 
B)  $6,000 debit balance. 
C)  $14,000 debit balance. 
D)  $14,000 credit balance.

Question 6

A debit to an asset account indicates

Accepted Answer

A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset. 
A)  an error. 
B)  a credit was made to a liability account. 
C)  a decrease in the asset. 
D)  an increase in the asset.

Question 7

The chart of accounts is a special ledger used in accounting systems.

Accepted Answer

A) True 
 B)False

Question 8

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

Accepted Answer

A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation. 
A)  no errors have been made. 
B)  no errors can be discovered. 
C)  that all accounts reflect correct balances. 
D)  the mathematical equality of the accounting equation.

Question 9

A debit to an account indicates an increase in that account.

Accepted Answer

A) True 
 B)False

Question 10

After journal entries are posted, the reference column

Accepted Answer

A)  of the general journal will be blank. 
B)  of the general ledger will show journal page numbers. 
C)  of the general journal will show "Dr" or "Cr". 
D)  of the general ledger will show account numbers. 
A)  of the general journal will be blank. 
B)  of the general ledger will show journal page numbers. 
C)  of the general journal will show "Dr" or "Cr". 
D)  of the general ledger will show account numbers.

Question 11

Which of the following statements is false?

Accepted Answer

A)  Revenues increase stockholders' equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits. 
A)  Revenues increase stockholders' equity. 
B)  Revenues have normal credit balances. 
C)  Revenues are a positive factor in the computation of net income. 
D)  Revenues are increased by debits.

On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

The final step in the recording process is to transfer the journal information to the

A debit to an asset account indicates

The chart of accounts is a special ledger used in accounting systems.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

A debit to an account indicates an increase in that account.

After journal entries are posted, the reference column

Which of the following statements is false?

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

On June 1, 2015 Ted Leo buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction, he will

On October 3, Karl Schickele, a carpenter, received a cash payment for services previously billed to a client. Karl paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a

The final step in the recording process is to transfer the journal information to the

A debit to an asset account indicates

The chart of accounts is a special ledger used in accounting systems.

If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates

A debit to an account indicates an increase in that account.

After journal entries are posted, the reference column

Which of the following statements is false?

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