Question 1

Posting

Accepted Answer

A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating. 
A)  should be performed in account number order. 
B)  accumulates the effects of journalized transactions in the individual accounts. 
C)  involves transferring all debits and credits on a journal page to the trial balance. 
D)  is accomplished by examining ledger accounts and seeing which ones need updating.

Question 2

An account is a part of the financial information system and is described by all except which one of the following?

Accepted Answer

A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title. 
A)  An account has a debit and credit side. 
B)  An account is a source document. 
C)  An account may be part of a manual or a computerized accounting system. 
D)  An account has a title.

Question 3

Which of the following are the same under both GAAP and IFRS?

Accepted Answer

A)  The account. 
B)  Debit and credit rules. 
C)  Steps in the recording process. 
D)  All of these answer choices are correct. 
A)  The account. 
B)  Debit and credit rules. 
C)  Steps in the recording process. 
D)  All of these answer choices are correct.

Question 4

A compound journal entry requires several debits to one account and several credits to one account.

Accepted Answer

A) True 
 B)False

Question 5

Sara Bernheat withdraws $700 cash from her business for personal use. The entry for this transaction will include a debit of $700 to

Accepted Answer

A)  Owner's Drawings. 
B)  Owner's Capital. 
C)  Owner's Salaries Expense. 
D)  Salaries and Wages Expense. 
A)  Owner's Drawings. 
B)  Owner's Capital. 
C)  Owner's Salaries Expense. 
D)  Salaries and Wages Expense.

Question 6

On October 3 Ken Steele a carpenter received a cash payment for services previously billed to a client. Ken 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 Owner's Capital. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable. 
A)  credit to Owner's Capital. 
B)  credit to Notes Payable. 
C)  debit to Accounts Receivable. 
D)  credit to Accounts Payable.

Question 7

The ledger accounts should be arranged in

Accepted Answer

A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal. 
A)  chronological order. 
B)  alphabetical order. 
C)  financial statement order. 
D)  order of appearance in the journal.

Question 8

On August 13 2016 Accounting Services Co. purchased office equipment for $1700 and office supplies of $300 on account. Which of the following journal entries is recorded correctly and in the standard format? a. 
$\begin{array}{l}
\text { Equipment } &1,700\
\quad \text { Account Payable }&&2,000\
\text { Supplies }&300
\end{array}$

b.
$\begin{array}{l}
\text { Equipment }&&1,700 \
\text { Supplies }&&300\
\quad \text { Account Payable }&2,000\
\end{array}$

c. 
$\begin{array}{l}
 \text { Account Payable }&2,000\
\text { Equipment }&&1,700 \
\text { Supplies }&&300
\end{array}$

d. 
$\begin{array}{l}
\text { Equipment } &1,700\
\text { Supplies } &300\
\quad \text { Account Payable }&&2,000\
\end{array}$

Accepted Answer

The answer of On August 13 2016 Accounting Services Co....

Question 9

An account consists of

Accepted Answer

A)  a title a debit balance and a credit balance. 
B)  a title a left side and a debit balance. 
C)  a title a debit side and a credit side. 
D)  a title a right side and a debit balance. 
A)  a title a debit balance and a credit balance. 
B)  a title a left side and a debit balance. 
C)  a title a debit side and a credit side. 
D)  a title a right side and a debit balance.

Question 10

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 11

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

Accepted Answer

A) True 
 B)False

Question 12

An account will have a credit balance if the

Accepted Answer

A)  credits exceed the debits. 
B)  first transaction entered was a credit. 
C)  debits exceed the credits. 
D)  last transaction entered was a credit. 
A)  credits exceed the debits. 
B)  first transaction entered was a credit. 
C)  debits exceed the credits. 
D)  last transaction entered was a credit.

Question 13

Fair value is relied on

Accepted Answer

A)  less under IFRS than under GAAP. 
B)  more under IFRS than under GAAP. 
C)  equally under IFRS and GAAP. 
D)  infrequently under IFRS. 
A)  less under IFRS than under GAAP. 
B)  more under IFRS than under GAAP. 
C)  equally under IFRS and GAAP. 
D)  infrequently under IFRS.

Question 14

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 15

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 16

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 17

Identify the impact on the accounting equation of the following transactions.
1. Purchased 36-month insurance policy for cash.
2. Purchased supplies on account.
3. Received utility bill to be paid at later date.
4. Paid utility bill previously accrued.

Accepted Answer

1. Net effect is no change: Increases as

Question 18

The following transactions took place for Tanaka company:
1. Purchased equipment on account for $9800.
2. Billed customers $5600 for services performed.
3. Made payment of $2400 on account for equipment purchased earlier in month.
4. Collected $3900 on customer accounts.
1. What is the balance in Accounts Payable at June 30 2016?
2. What is the balance in Accounts Receivable at June 30 2016?

Accepted Answer

None

Question 19

On June 1 2016 Ben Casey 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 20

The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

Accepted Answer

A) True 
 B)False

Exam 2: The Recording Process

Posting

An account is a part of the financial information system and is described by all except which one of the following?

Which of the following are the same under both GAAP and IFRS?

A compound journal entry requires several debits to one account and several credits to one account.

Sara Bernheat withdraws $700 cash from her business for personal use. The entry for this transaction will include a debit of $700 to

On October 3 Ken Steele a carpenter received a cash payment for services previously billed to a client. Ken 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 ledger accounts should be arranged in

An account consists of

Which of the following is false about a journal?

Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

An account will have a credit balance if the

Fair value is relied on

The right side of an account

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.

Which of the following is incorrect regarding a trial balance?

Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2. Purchased supplies on account. 3. Received utility bill to be paid at later date. 4. Paid utility bill previously accrued.

On June 1 2016 Ben Casey buys a copier machine for his business and finances this purchase with cash and a note. When journalizing this transaction he will

The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

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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