Question 1

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 2

When journalizing the reference column is

Accepted Answer

A)  left blank. 
B)  used to reference the source document. 
C)  used to reference the journal page. 
D)  used to reference the financial statements. 
A)  left blank. 
B)  used to reference the source document. 
C)  used to reference the journal page. 
D)  used to reference the financial statements.

Question 3

During February 2016 its first month of operations the owner of Solcist Co. invested cash of $50000. Solcist had cash revenues of $16000 and paid expenses of $21000. Assuming no other transactions impacted the cash account what is the balance in Cash at February 29?

Accepted Answer

A)  $5000 credit 
B)  $5000 debit 
C)  $45000 debit 
D)  $55000 debit 
A)  $5000 credit 
B)  $5000 debit 
C)  $45000 debit 
D)  $55000 debit

Question 4

For each of the following transactions of Neon Garden identify the account to be debited and the account to be credited.
1. Purchased 18-month insurance policy for cash.
2. Paid weekly payroll.
3. Purchased supplies on account.
4. Received utility bill to be paid at later date.

Accepted Answer

None

Question 5

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31 2016. 
$\begin{array} { l r l r } 
\text { Accounts Payable } & \$ 1,100 & \text { Rent Expense } & \$ 500 \
\text { Accounts Receivable } & 1,700 & \text { Service Revenue } & 3,000 \
\text { Cash } & 1,400 & \text { Supplies } & 200 \
\text { Owner's Capital } & 2,000 & \text { Salaries and Wages Expense } & 1,300 \
\text { Owner's Drawings } & 1,000 & &
\end{array}$

Accepted Answer

None

Question 6

The left side of an account is

Accepted Answer

A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account. 
A)  blank. 
B)  a description of the account. 
C)  the debit side. 
D)  the balance of the account.

Question 7

A credit to a liability account

Accepted Answer

A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account. 
A)  indicates an increase in the amount owed to creditors. 
B)  indicates a decrease in the amount owed to creditors. 
C)  is an error. 
D)  must be accompanied by a debit to an asset account.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A)  Capital account 
B)  Revenue account 
C)  Liability account 
D)  Owner's Drawings account 
A)  Capital account 
B)  Revenue account 
C)  Liability account 
D)  Owner's Drawings account

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The normal balance of any account is the

Accepted Answer

A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account. 
A)  left side. 
B)  right side. 
C)  side which increases that account. 
D)  side which decreases that account.

Question 13

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 14

The drawing account is a subdivision of the owner's capital account and appears as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 15

Business documents can provide evidence that a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 16

Match between columns
                        Premises:  This step is called posting.
 Business documents are examined to determine the effects of transactions on the accounts.
 This step is called journalizing.

Accepted Answer

The Answer of Analyze each transaction and Enter each transaction is...

Question 17

In the first month of operations the total of the debit entries to the cash account amounted to $1400 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)  $1400 debit balance. 
C)  $600 debit balance. 
D)  $600 credit balance. 
A)  $800 credit balance. 
B)  $1400 debit balance. 
C)  $600 debit balance. 
D)  $600 credit balance.

Question 18

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

Accepted Answer

A)  $100 debit. 
B)  $2700 debit. 
C)  $100 credit. 
D)  $2700 credit. 
A)  $100 debit. 
B)  $2700 debit. 
C)  $100 credit. 
D)  $2700 credit.

Question 19

Qwik Company showed the following balances at the end of its first year: $$\begin{array} { l r } 
\text { Cash } & \$ 8,700 \
\text { Prepaid insurance } & 9,400 \
\text { Accounts receivable } & 7,000 \
\text { Accounts payable } & 5,800 \
\text { Notes payable } & 9,400 \
\text { Owner's Capital } & 2,300 \
\text { Owner's Drawings } & 1,400 \
\text { Revenues } & 44,000 \
\text { Expenses } & 35,000
\end{array}$$ What did Qwik Company show as total credits on its trial balance?

Accepted Answer

A)  $52400 
B)  $61500 
C)  $62900 
D)  $70900 
A)  $52400 
B)  $61500 
C)  $62900 
D)  $70900

Question 20

When an owner makes a withdrawal

Accepted Answer

A)  it doesn't have to be cash it could be another asset. 
B)  the owner's drawings account will be increased with a credit. 
C)  the owner's capital account will be directly increased with a debit. 
D)  the owner's drawings account will be decreased with a debit. 
A)  it doesn't have to be cash it could be another asset. 
B)  the owner's drawings account will be increased with a credit. 
C)  the owner's capital account will be directly increased with a debit. 
D)  the owner's drawings account will be decreased with a debit.

Exam 2: The Recording Process

The final step in the recording process is to

When journalizing the reference column is

During February 2016 its first month of operations the owner of Solcist Co. invested cash of $50000. Solcist had cash revenues of $16000 and paid expenses of $21000. Assuming no other transactions impacted the cash account what is the balance in Cash at February 29?

For each of the following transactions of Neon Garden identify the account to be debited and the account to be credited. 1. Purchased 18-month insurance policy for cash. 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date.

Prepare a trial balance from the ledger accounts of Black Diamond Express as of January 31 2016. Accounts Payable \ 1,100 Rent Expense \ 500 Accounts Receivable 1,700 Service Revenue 3,000 Cash 1,400 Supplies 200 Owner's Capital 2,000 Salaries and Wages Expense 1,300 Owner's Drawings 1,000

The left side of an account is

A credit to a liability account

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

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

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

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

The normal balance of any account is the

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

The drawing account is a subdivision of the owner's capital account and appears as an expense on the income statement.

Business documents can provide evidence that a transaction has occurred.

In the first month of operations the total of the debit entries to the cash account amounted to $1400 and the total of the credit entries to the cash account amounted to $800. The cash account has a(n)

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

When an owner makes a withdrawal

Accounting in Action

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

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