Question 1

A chart of accounts for a business firm

Accepted Answer

A) is a graph. 
B) indicates the amount of profit or loss for the period. 
C) lists the accounts and account numbers that identify their location in the ledger. 
D) shows the balance of each account in the general ledger. 
A) is a graph. 
B) indicates the amount of profit or loss for the period. 
C) lists the accounts and account numbers that identify their location in the ledger. 
D) shows the balance of each account in the general ledger. C

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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. A

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

Accepted Answer

A) compound entry. 
B) general journal. 
C) general ledger. 
D) chart of accounts. 
A) compound entry. 
B) general journal. 
C) general ledger. 
D) chart of accounts.

Question 6

Which of the following is not true of the terms debit and credit?

Accepted Answer

A) They can be abbreviated as Dr.and Cr. 
B) They can be interpreted to mean increase and decrease. 
C) They can be used to describe the balance of an account. 
D) They can be interpreted to mean left and right. 
A) They can be abbreviated as Dr.and Cr. 
B) They can be interpreted to mean increase and decrease. 
C) They can be used to describe the balance of an account. 
D) They can be interpreted to mean left and right.

Question 7

A credit is not the normal balance for which account listed below?

Accepted Answer

A) Common stock account 
B) Revenue account 
C) Liability account 
D) Dividends account 
A) Common stock account 
B) Revenue account 
C) Liability account 
D) Dividends account

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Which of the following statements is incorrect?

Accepted Answer

A) Expenses increase stockholders' equity. 
B) Expenses have normal debit balances. 
C) Expenses decrease stockholders' equity. 
D) Expenses are a negative factor in the computation of net income. 
A) Expenses increase stockholders' equity. 
B) Expenses have normal debit balances. 
C) Expenses decrease stockholders' equity. 
D) Expenses are a negative factor in the computation of net income.

Question 12

A compound journal entry involves

Accepted Answer

A) two accounts. 
B) three accounts. 
C) three or more accounts. 
D) four or more accounts. 
A) two accounts. 
B) three accounts. 
C) three or more accounts. 
D) four or more accounts.

Question 13

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 14

The standard format of a journal would not include

Accepted Answer

A) a reference column. 
B) an account title column. 
C) a T-account. 
D) a date column. 
A) a reference column. 
B) an account title column. 
C) a T-account. 
D) a date column.

Question 15

The normal balance of an expense is a credit.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

Revenues are a subdivision of retained earnings.

Accepted Answer

A) True 
 B)False

Question 19

The first step in the recording process is to

Accepted Answer

A) prepare financial statements. 
B) analyze each transaction for its effect on the accounts. 
C) post to a journal. 
D) prepare a trial balance. 
A) prepare financial statements. 
B) analyze each transaction for its effect on the accounts. 
C) post to a journal. 
D) prepare a trial balance.

Question 20

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.

A chart of accounts for a business firm

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

A number in the reference column in a general journal indicates

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

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

Which of the following is not true of the terms debit and credit?

A credit is not the normal balance for which account listed below?

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

The ledger should be arranged in

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

Which of the following statements is incorrect?

A compound journal entry involves

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

The standard format of a journal would not include

The normal balance of an expense is a credit.

The chart of accounts is a

The right side of an account

Revenues are a subdivision of retained earnings.

The first step in the recording process is to

A debit to an asset account indicates

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

Filters

Exam 2: The Recording Process

A chart of accounts for a business firm

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

A number in the reference column in a general journal indicates

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

An accounting record of the balances of all assets, liabilities, and stockholders' equity accounts is called a

Which of the following is not true of the terms debit and credit?

A credit is not the normal balance for which account listed below?

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

The ledger should be arranged in

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

Which of the following statements is incorrect?

A compound journal entry involves

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

The standard format of a journal would not include

The normal balance of an expense is a credit.

The chart of accounts is a

The right side of an account

Revenues are a subdivision of retained earnings.

The first step in the recording process is to

A debit to an asset account indicates

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

Filters