Question 1

A journal is also known as a book of original entry.

Accepted Answer

A) True 
 B)False

Question 2

Transactions are entered in the ledger accounts and then transferred to journals.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

Which of the following is false about a journal?

Accepted Answer

A) It discloses in one place the complete effects of a transaction. 
B) It provides a chronological record of transactions. 
C) It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared. 
D) It keeps in one place all the information about changes in specific account balances. 
A) It discloses in one place the complete effects of a transaction. 
B) It provides a chronological record of transactions. 
C) It helps to prevent or locate errors because debit and credit amounts for each entry can be readily compared. 
D) It keeps in one place all the information about changes in specific account balances.

Question 6

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

Accepted Answer

A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue 
A) Dividends 
B) Cash 
C) Accounts Receivable 
D) Service Revenue

Question 7

At October 1, 2015, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2015, the accounts payable balance is

Accepted Answer

A) $25,000. 
B) $41,000. 
C) $55,000. 
D) $121,000. 
A) $25,000. 
B) $41,000. 
C) $55,000. 
D) $121,000.

Question 8

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

Accepted Answer

A) the company's bank. 
B) stockholders' equity. 
C) ledger accounts. 
D) financial statements. 
A) the company's bank. 
B) stockholders' equity. 
C) ledger accounts. 
D) financial statements.

Question 9

At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had credit revenues of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

Accepted Answer

A) $600 debit. 
B) $3,000 debit. 
C) $600 credit. 
D) $3,000 credit. 
A) $600 debit. 
B) $3,000 debit. 
C) $600 credit. 
D) $3,000 credit.

Question 10

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 11

After transaction information has been recorded in the journal, it is transferred to the

Accepted Answer

A) trial balance. 
B) income statement. 
C) book of original entry. 
D) ledger. 
A) trial balance. 
B) income statement. 
C) book of original entry. 
D) ledger.

Question 12

In the first month of operations, the total of the debit entries to the cash account amounted to $1,200 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

Accepted Answer

A) $800 credit balance. 
B) $1,200 debit balance. 
C) $400 debit balance. 
D) $400 credit balance. 
A) $800 credit balance. 
B) $1,200 debit balance. 
C) $400 debit balance. 
D) $400 credit balance.

Question 13

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

Accepted Answer

A) nothing further must be done. 
B) debited the retained earnings account for $2,100. 
C) credited another asset account for $400. 
D) credited a liability account for $2,100. 
A) nothing further must be done. 
B) debited the retained earnings account for $2,100. 
C) credited another asset account for $400. 
D) credited a liability account for $2,100.

Question 14

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

Accepted Answer

A) True 
 B)False

Question 15

A journal provides

Accepted Answer

A) the balances for each account. 
B) information about a transaction in several different places. 
C) a list of all accounts used in the business. 
D) a chronological record of transactions. 
A) the balances for each account. 
B) information about a transaction in several different places. 
C) a list of all accounts used in the business. 
D) a chronological record of transactions.

Question 16

On June 1, 2015, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Accepted Answer

A) $3,000 debit balance 
B) $17,000 debit balance 
C) $3,000 credit balance 
D) $2,000 credit balance 
A) $3,000 debit balance 
B) $17,000 debit balance 
C) $3,000 credit balance 
D) $2,000 credit balance

Question 17

Under the double-entry system, revenues must always equal expenses.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

Accepted Answer

A) True 
 B)False

A journal is also known as a book of original entry.

Transactions are entered in the ledger accounts and then transferred to journals.

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.

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

Which of the following is false about a journal?

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

At October 1, 2015, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2015, the accounts payable balance is

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had credit revenues of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

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

After transaction information has been recorded in the journal, it is transferred to the

In the first month of operations, the total of the debit entries to the cash account amounted to $1,200 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

A journal provides

On June 1, 2015, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Under the double-entry system, revenues must always equal expenses.

Which of the following is incorrect regarding a trial balance?

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

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

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

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Exam 2: The Recording Process

A journal is also known as a book of original entry.

Transactions are entered in the ledger accounts and then transferred to journals.

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.

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

Which of the following is false about a journal?

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

At October 1, 2015, Padilla Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2015, the accounts payable balance is

After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to

At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had credit revenues of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is

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

After transaction information has been recorded in the journal, it is transferred to the

In the first month of operations, the total of the debit entries to the cash account amounted to $1,200 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and signed a note for the balance. TransAm debited the Equipment account, credited Cash and

A general ledger should be arranged in the order in which accounts are presented in the financial statements, beginning with the balance sheet accounts.

A journal provides

On June 1, 2015, Portugal Inc. reported a cash balance of $12,000. During June, Portugal made deposits of $5,000 and made disbursements totalling $14,000. What is the cash balance at the end of June?

Under the double-entry system, revenues must always equal expenses.

Which of the following is incorrect regarding a trial balance?

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

The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger.

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