Question 1

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 2

During 2016 its first year of operations Aida's Bakery had revenues of $65000 and expenses of $35000. The business had owner's drawings of $22000. What is the amount of owner's equity at December 31 2016?

Accepted Answer

A)  $0 
B)  $8000 credit 
C)  $30000 credit 
D)  $22000 debit 
A)  $0 
B)  $8000 credit 
C)  $30000 credit 
D)  $22000 debit

Question 3

Camper Van Company purchased equipment for $2300 cash. As a result of this event

Accepted Answer

A)  owner's equity decreased by $2300. 
B)  total assets increased by $2300. 
C)  total assets remained unchanged. 
D)  owner's equity decreased and total assets increased by $2300. 
A)  owner's equity decreased by $2300. 
B)  total assets increased by $2300. 
C)  total assets remained unchanged. 
D)  owner's equity decreased and total assets increased by $2300.

Question 4

Which one of the following could represent the expanded basic accounting equation?

Accepted Answer

A)  Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses. 
B)  Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues. 
C)  Assets - Liabilities - Owner's Drawings = Owner's Capital + Revenues - Expenses. 
D)  Assets = Revenues + Expenses - Liabilities. 
A)  Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses. 
B)  Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues. 
C)  Assets - Liabilities - Owner's Drawings = Owner's Capital + Revenues - Expenses. 
D)  Assets = Revenues + Expenses - Liabilities.

Question 5

The entire group of accounts maintained by a company is called the

Accepted Answer

A)  chart of accounts. 
B)  general journal. 
C)  general ledger. 
D)  trial balance. 
A)  chart of accounts. 
B)  general journal. 
C)  general ledger. 
D)  trial balance.

Question 6

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 7

The journal provides a chronological record of transactions.

Accepted Answer

A) True 
 B)False

Question 8

Which account below is not a subdivision of owner's equity?

Accepted Answer

A)  Owner's Drawings 
B)  Revenues 
C)  Expenses 
D)  Liabilities 
A)  Owner's Drawings 
B)  Revenues 
C)  Expenses 
D)  Liabilities

Question 9

For each transaction given enter in the tabulation given below a "D" for debit and a "C" for credit to reflect the increases and decreases of the assets liabilities and owner's equity accounts. In some cases there may be a "D" and a "C" in the same box.
Transactions:
1. Owner invests cash in the business.
2. Pays insurance in advance for six months.
3. Pays secretary's salary.
4. Purchases office supplies on account.
5. Pays electricity bill.
6. Borrows money from local bank.
7. Makes payment on account.
8. Receives cash due from customers.
9. Provides services on account.
10. Owner withdraws assets from the business.

Accepted Answer

The answer of For each transaction given enter in the...

Question 10

The transactions of the Litehouse Realty are recorded in the general journal below. You are to post the journal entries to T-accounts.

Accepted Answer

The answer of The transactions of the Litehouse Realty are...

Question 11

Prepare journal entries for each of the following transactions.
1. Performed services for customers on account $8400.
2. Purchased $20000 of equipment on account.
3. Received $3800 from customers in transaction 1.
4. The owner J. Dean withdrew $2900 cash for personal use.

Accepted Answer

None

Question 12

The basic steps in the recording process are: _______________ each transaction enter the transaction in a ________________ and transfer the _______________ information to appropriate accounts in the ________________.

Accepted Answer

analyze jo

Question 13

______________ _______________ and _______________ have debit normal account balances whereas _______________ ________________ and ________________ have credit normal account balances.

Accepted Answer

Assets expenses owne

Question 14

The double-entry system requires that each transaction must be recorded

Accepted Answer

A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense. 
A)  in at least two different accounts. 
B)  in two sets of books. 
C)  in a journal and in a ledger. 
D)  first as a revenue and then as an expense.

Question 15

For the basic accounting equation to stay in balance each transaction recorded must

Accepted Answer

A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts. 
A)  affect two or less accounts. 
B)  affect two or more accounts. 
C)  always affect exactly two accounts. 
D)  affect the same number of asset and liability accounts.

Question 16

Which of the following correctly identifies normal balances of accounts? A)
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Debit } \
\text { Expenses } & \text { Credit }
\end{array}$

B)
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Credit }
\end{array}$

C)
$\begin{array}{ll}
\text { Assets } & \text { Credit } \
\text { Liabilities } & \text { Debit } \
\text { Owner's Capital } & \text { Debit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$

D)
$\begin{array}{ll}
\text { Assets } & \text { Debit } \
\text { Liabilities } & \text { Credit } \
\text { Owner's Capital } & \text { Credit } \
\text { Revenues } & \text { Credit } \
\text { Expenses } & \text { Debit }
\end{array}$

Accepted Answer

The answer of Which of the following correctly identifies normal...

Question 17

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.

Question 18

Beethoven Company provided consulting services and billed the client $3600. As a result of this event

Accepted Answer

A)  assets remained unchanged. 
B)  assets increased by $3600. 
C)  owner's equity increased by $3600. 
D)  assets and owner's equity both increased by $3600. 
A)  assets remained unchanged. 
B)  assets increased by $3600. 
C)  owner's equity increased by $3600. 
D)  assets and owner's equity both increased by $3600.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The name given to entering transaction data in the journal is

Accepted Answer

A)  chronicling. 
B)  listing. 
C)  posting. 
D) journalizing. 
A)  chronicling. 
B)  listing. 
C)  posting. 
D) journalizing.

Exam 2: The Recording Process

The chart of accounts is a

During 2016 its first year of operations Aida's Bakery had revenues of $65000 and expenses of $35000. The business had owner's drawings of $22000. What is the amount of owner's equity at December 31 2016?

Camper Van Company purchased equipment for $2300 cash. As a result of this event

Which one of the following could represent the expanded basic accounting equation?

The entire group of accounts maintained by a company is called the

Posting of journal entries should be done in

The journal provides a chronological record of transactions.

Which account below is not a subdivision of owner's equity?

The transactions of the Litehouse Realty are recorded in the general journal below. You are to post the journal entries to T-accounts.

Prepare journal entries for each of the following transactions. 1. Performed services for customers on account $8400. 2. Purchased $20000 of equipment on account. 3. Received $3800 from customers in transaction 1. 4. The owner J. Dean withdrew $2900 cash for personal use.

The basic steps in the recording process are: _______________ each transaction enter the transaction in a ________________ and transfer the _______________ information to appropriate accounts in the ________________.

______________ _______________ and _______________ have debit normal account balances whereas _______________ ________________ and ________________ have credit normal account balances.

The double-entry system requires that each transaction must be recorded

For the basic accounting equation to stay in balance each transaction recorded must

A chart of accounts for a business firm

Beethoven Company provided consulting services and billed the client $3600. As a result of this event

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

The name given to entering transaction data in the journal is

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

Filters

The basic steps in the recording process are: _______ each transaction enter the transaction in a and transfer the _ information to appropriate accounts in the __________.

______ _ and _ have debit normal account balances whereas _ and ______ have credit normal account balances.